Lloyds TSB Launches SME CLO
May 30, 2008
Lloyds TSB Corporate Markets has launched its latest SME CLO. This is the bank's fourth balance sheet securitization from its commercial loan book.
The deal, dubbed Doncaster Gold, is a £1 billion synthetic securitization of property loans. The CLO has been privately placed with selected institutional investors and forms part of the bank’s planned strategy of distribution to create greater balance sheet efficiency, according to the bank.
Lloyds TSB said it intends to continue distributing assets in support of its core client franchise despite the current market dislocation. This not only enables the bank to remain the lender of record for the underlying loans but also allows it to maintain a direct relationship with its customers.
The Doncaster Gold CLO follows the bank’s completion of a number of other similar transactions, including the £1 billion Ascot Black CLO in October 2006, which was increased to £1.5 billion in June 2007, and the £3 billion Goodwood Gold CLO in November 2007.
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