Deutsche Bank today announced the US$3.5bn issuance of TRAFIN 2023-1, the fifth iteration of its trade finance significant risk transfer synthetic securitisation.
To provide credit protection for an underlying and revolving portfolio of US$3.5bn in trade finance assets, Deutsche Bank has originated, structured, arranged and placed a first loss tranche of US$227.5m with a syndicate of institutional investors from Europe and the Americas. The issuance follows the maturity of TRAFIN 2018-1 – the bank’s fourth iteration of this trade finance securitisation – in November 2023.
The synthetic securitisation transaction has a 3.5-year scheduled maturity, and the weighted average life of the initial pool is around 90 days. As these short-term assets mature and the pool amortises, new trade finance assets will be selected to replenish the portfolio on a monthly basis based on pre-set conditions.
