Aeon seeks to raise $600m via receivables-backed securities

Aeon Credit Service (Asia) yesterday announced it would raise $600 million via the issue of certificates backed by credit-card receivables.

The company said it had appointed Citicorp as its exclusive adviser in raising the money.

The funds would be used to enable Aeon to write new credit-card receivables and expand other business in Hong Kong.

The proposed transaction would involve the transfer of receivables originating under different card programmes into an independently-owned trust company.

The proposed transaction was over five years but both Aeon and the trust company had the option to liquidate the programme after three years.

Additional receivables would be continuously transferred to the trust company.