The transaction is a USD 1.45bn securitisation of Trade Finance Exposures originated by Standard Chartered Bank (SCB) through its UK branch (SCB UK) and its subsidiaries in Hong Kong (SCB HK) and Singapore (SCB SIN). The transaction has an initial 12-month revolving period and as per its documentation it may extend the 12-month revolving period up to three times, assuming no series 2020-1 amortisation events are breached and the conditions precedent for the revolving period extension have been satisfied.

Scope’s announcement addresses the credit impact of the proposed second extension of the transaction revolving period and maturity by twelve months. At the same time, the series 2020-1 notes margin will be increased to 1.45% from current 0.45% p.a. The second extension margin is expected to be effective from the 17th of October 2022, with the first payment under the second extension rate payable on the 15th of November 2022.

Scope’s analysis only covers the credit impact associated with the proposed second extension and series 2020-1 notes margin change described above. Scope has not addressed other non-credit related effects that may be relevant for investors and/or counterparties when assessing the impact of said proposed first extension.

This announcement does not constitute a rating action nor indicates the likelihood of a credit rating action in the short term. The latest information on the credit rating along with the associated rating history can be found on www.scoperatings.com.