HDFC issues Class A PTCs through its SPV

Mumbai, Feb 1 | Updated: Feb 2 2006, 05:30am hrs
Housing Development Finance Company Ltd (HDFC) has issued Class A pass through certificates (PTCs) through its special purpose vehicle (SPV), called MBS 2006 Series I Trust under the securitisation programme of HDFC.

The pool serving as collateral for the PTCs comprises 5,315 residential mortgage loans.

The principal outstanding of the pool is Rs 315 crore with total receivables of Rs 407 crore as of the cut-off date.

The loans are fully adjustable, benchmarked to the retail prime-lending rate of HDFC. The average current outstanding loan balance is Rs 5.9 lakhs. The weighted-average seasoning for the pool is about 31 months.

A CLASS

Issues Class A PTCs called MBS 2006 Series I Trust under the securitisation programme of HDFC.
Pool serving as collateral for the PTCs comprises 5,315 residential mortgage loans
Average current outstanding loan balance is Rs 5.9 lakhs

HDFC will assign the loan pool in favour of IL&FS Trust Company Ltd, the trustee for the SPV trust which, in turn, will issue PTCs evidencing beneficial interest in these loans. The PTC issuance amount will be paid to HDFC as the purchase consideration.

This transaction has a par structure. The Class A PTCs will receive the scheduled principal during the first 106 months of the transaction, while Class B PTCs will receive its entire outstanding principal in the 107th month.