<article><a style="color: #000080;" href="http://www.dealstreetasia.com/?s=IFC" target="_blank">International Finance Corp</a>., the private lending arm of the World Bank, has proposed an investment of up to $80 million in a new  collateralized loan obligation vehicle of Singapore-based <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=United+Overseas+Bank" target="_blank">United Overseas Bank</a> (UOB).</article>

<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=IFC" target="_blank">International Finance Corp</a>., the private lending arm of the World Bank, has proposed an investment of up to $80 million in a new  collateralized loan obligation vehicle of Singapore-based <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=United+Overseas+Bank" target="_blank">United Overseas Bank</a> (UOB).
The investment will be made through multiple classes of mezzanine securities. The CLO is named United Asia Loan Funding Pte. Ltd.
CLOs are complex financial instruments that pool high-yield corporate debt and sell it to finance large buyouts. The bundled debt is sliced into various securities that have different levels of risk and are rated between AAA, the best ranking, down to B.
The market for such products has been tough lately. In the US, the biggest market, the price of CLOs plunged in the early part of the year.
United Asia Loan funding will securitize Asia emerging markets loans to borrowers domiciled in, or doing business in, the Asia-Pacific region that were originated by global and regional banks in Asia.
The objective of IFC&#8217;s investment is to encourage wider spread the CLO market in Asia, which been dormant since the global financial crisis of 2008. The project will provide an impetus to similar transactions by other asset managers, which in turn is expected to increase the availability and liquidity of fixed income securities in the Asian market, IFC said in a filing.
Financing under the proposed project would be used for investments in loans to borrowers that are domiciled in or doing business across the Asia-Pacific region. The transfer of credit and liquidity risk to the capital markets would help free up bank balance sheets for term loans that they would not otherwise offer in the absence of a vehicle to offload risk to the capital markets.
The assets of United Asia Loan Funding will be co-managed by UOB Asset Management Limited (UOBAM), based in Singapore, and <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=sc+lowy" target="_blank">SC Lowy Asset Management</a>, based in Hong Kong. UOBAM is a wholly-owned subsidiary of UOB. UOBAM has been active in both Asian credit and structured credit since 1998.
SC Lowy is licensed in Hong Kong as a fund manager, with assets under management of approximately US$500 million, comprised of Asian loans and bonds. The company was founded in 2009 by Michel Lowy and Soo Cheon Lee and has operations in Hong Kong and London.
<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Resource+Capital+Markets+Inc" target="_blank">Resource Capital Markets Inc</a>., Standard Chartered Bank, and UOB will act as joint arrangers on this transaction. RCM is a investment firm owned by asset management firm Resource America, Inc.
Also read:
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/resource-capital-fund-44352/" target="_blank">Resource Capital Fund to buy Australian mining services firm Ausenco for $153m</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/?s=United+Overseas+Bank" target="_blank">Japan’s SMBC Nikko sets up investment banking team in New York</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/?s=IFC" target="_blank">IFC to invest $20m in Abraaj Group’s $200m Pakistan fund</a>
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IFC has proposed investing up to $80 million in a new  collateralized loan obligation vehicle of Singapore-based United Overseas Bank.

Singapore: IFC might invest $80m in United Overseas Bank's CLO

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Singapore: IFC might invest $80m in United Overseas Bank's CLO

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