Successful Closing of TGF Star II SIF



T. Gargour & Fils’ second securitsation fund launched by BSEC

Beirut, November17th, 2016: BSEC – Bemo Securitisation SAL announced the launching of TGF Star II SIF, the second securitisation investment fund and the fifth issuance for T. Gargour & Fils SAL.

BSEC is pleased to announce the launching of TGF Star II SIF, the second securitisation investment fund for T. Gargour & Fils SAL ("TGF"), the exclusive distributor in the Levant region of Mercedes-Benz passenger and commercial vehicles, as well as other car brands including Smart.

TGF Star II SIF is a $15.7 million securitisation investment fund, established under the Lebanese laws and regulations and pursuant to the Lebanese Capital Markets Authority’s authorization, for the purpose of buying a portfolio of auto loans extended by TGF to its private customers. This fund comes as a replacement to the TGF Star SIF fund launched back in 2012 and which has successfully performed four consecutive issuances of an aggregate size of $16.3 million.

"TGF has seen a lot of value since the inception of its first securitisation investment fund. The company was able to finance individual operations in a systematic manner and was therefore capable of boosting its sales activity in an autonomous and consistent manner. This fund is strategic for our company and we are happy with our cooperation with BSEC to putting it in place; we wish to assure the partnering banks of our full commitment to maintain our existing relation of trust and support", explained Robert Khabbaz, Group CFO of T. Gargour & Fils.

The structure of the TGF Star II SIF fund involves the issuance of two (2) classes of notes, senior Class A Notes with an expected maturity of 3.75 years placed with local Lebanese banks and investment funds, and a subordinated Class B Note held by TGF for credit enhancement purposes. Similar to the previous fund, the structure provides several protections to the Class A Noteholders, including the subordination of the Class B Note, cash reserves as well as other structural enhancements; TGF Star II SIF has also the flexibility to perform multiple issuances under the same platform. "We are very proud to bring to market yet another securitisation fund for T. Gargour & Fils SAL. The high credit profile and the good historical performance of the portfolio has enabled us to launch this transaction amid tough market conditions. We wish to thank TGF for his continuous trust. We wish to also thank the banks and other investors who have collaborated with us for the successful completion of the transaction", stated Ronald Yazbeck, General Manager of BSEC.

TGF Star II SIF is structured, arranged, placed and managed by BSEC. The issuance was subscribed to by Banque BEMO SAL, Fransa Invest Bank SAL, BLC Bank SAL, BBAC SAL, BLOM Bond Fund, Credit Libanais Investment Bank SAL and BSL Bank SAL. The legal counsel of BSEC on the transaction is Dr. Nasri Antoine Diab.


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