Royal Bank of Scotland
Royal Bank of Scotland (RBS) has continued to build its franchise in the securitisation field. In February this year, it was mandated as joint arranger and joint bookrunner for a debt issuance for private healthcare provider BUPA Hospitals. RBS was also sole arranger and sole bookrunner on the capital markets private placement lease refinancing and subordinated MTN programme.
The transaction represented a Ł450m ($711m) whole business securitisation of BUPA’s private hospital business – 34 hospitals, valued at Ł656m – with a further Ł120m lease refinancing closing at the same time. The judges highlighted the lateral thinking that was demonstrated in the deal: it was the first time in a European whole business securitisation that the transaction involved securitising one business within a wider existing group (in this case, the hospitals independently from insurance and nursing homes) and required the securitised cashflows and assets to be ring-fenced from the group, with a wholesale true sale of assets. It was further complicated by a restructuring and refinancing of 13 pre-existing leases.
“From its very inception in 1998, RBS’s securitisation business has been focused on the most innovative corporate transactions and the track record we have built up in that sector is second to none. The BUPA deal was an example of what RBS does best,” says Philip Basil, global head of restructuring.
Mr Basil is buoyant about the future but does see a few challenges ahead. “2003 looks like being yet another record year for the European market. However, there are some clouds ahead in the form of Basel II and IAS39. I would expect the 30% compound growth of the last five years to start to level off in 2004.”
