Megatone Takes Securitization To $485 Million

Argentine electrodomestic appliances retailer Electrónica Megatone, the country’s largest, has issued a further $19 million of financial securitizations, taking the nominal value of certificates issued by the company to date to $485 million. The company’s paper is rated AAA by Fitch Ratings Argentina. Banco de Valores and Compañía Inversora Bursátil arranged the deal and acted as placement agents. Deloitte & Touche Corporate Finance acted as financial advisor and controller. The issuance of local currency financial securitizations in Argentina has shot up this year, with offerings for the year, as at end-August totaling $1.36 billion, or around 85% of the total issued last year. Consumer credit remains the dominant underlying asset, accounting for 80% of all securitizations but growth is expected to come from leasing contracts, car loans, future cash flows from accounts receivables and infrastructure loans.