Outsourced Securitisation and Transaction Support Services

The bond issue centre of excellence for Deloitte South Africa is located within Corporate Finance. This team has been operating for over thirteen years and during that time has worked on a large number of listed and unlisted, term bond issues and Domestic Medium Term Note (‘DMTN’) Programmes issued in South Africa, as well as a number of Euro Medium Term Note Programmes issued in the UK and Europe, and Global Medium Term Note Programmes (‘GMTN’) issued in jurisdictions including the United States.

Deloitte is ranked as the number one Securitisation professional services Firm globally.

We service more than 50% of the South African Securitisation market through Outsourced Services or Transaction Support.

Deloitte offers a holistic suite of professional services from pre- to post transaction. Outsourced Securitisation Services (OSS) act as Securitisation Outsourced Administration providers and Back-up servicing providers.

We are further approved by S&P, Moody’s and Fitch to provide these services.

Key Service Offerings

Bond Issue Transaction Support

  • Regulatory Compliance Report
    As required by the Commercial Paper Exemption Notice under S1 of the Banks Act is issued at the inception of the DMTN programme. Issued annually during the life of the programme.
  • Comfort Letter
    Comfort letters for South African transactions are modelled on the International Capital Markets Association (‘ICMA’) standard. Comfort letters for UK and European transactions are issued using the ICMA templates. For notes to be offered in the United States, SAS72 format comfort letters are required.
  • Support from Global IFRS and Offerings Services (GIOS)
    Assistance in the preparation and review of Comfort Lettters issued to UK and US Investors.

Outsourced Securitisation

  • Outsourced administration of securitisation vehicles
    • Programme and series management.
    • Preparation of monthly management accounts.
    • Calculation and payment agent functions.
    • Preparation of rating agency surveillance reports and quarterly investor reports.
  • Back up servicing
    • Maintaining a copy of the primary service system within Deloitte.
    • Collecting and storing regular downloads of the pool data, or alternatively running a parallel synchronised system with full live details of the book.
    • Displaying to the rating agencies and trustees the back-up servicer’s ability to assume the primary servicing role at short notice, by performing periodic simulation.

Securitisation Transaction Support

  • Due diligence on securitisation pools
    • Sample testing and reporting to rating agencies on a securitisation’s pool of loans.
  • Regulatory review
    • Review of programme memorandum and associated documents to express compliance with the latest securitisation regulations issued by the South African Reserve Bank.