The Bank of New York announced today that it has been selected by Sanwa Finance Co., Ltd. to provide trustee and agency services for the Pylos II financing. The Bank of New York Trust Company (Cayman) Limited has also been selected to provide receivables trustee services. The 12,900,000,000 notes issued by Pylos II Ltd were arranged by Merrill Lynch Japan Securities Co., Ltd and are secured by a security interest in a trust created with The Bank of New York Trust Company (Cayman) Ltd as trustee. The notes are backed by a portfolio of consumer loans originated by Sanwa Finance.
Sanwa Finance Co., Ltd. was ranked the 14th largest consumer finance company in Japan, in terms of outstanding consumer loans as of its fiscal year-end report of 2001. As of March 2002, Sanwa had a 128.4 billion loan portfolio and 473,589 loan accounts originated through its branch network.
“We are delighted that Sanwa Finance Co., Ltd. has once again designated The Bank of New York as its corporate trust provider for this innovative transaction,” said Steven Hodgetts, managing director and division head for global trust services at The Bank of New York. “This appointment illustrates Sanwa Finance’s confidence in our experienced professionals and sophisticated technology, as well as in our ability to successfully close and administer this difficult financing.”
“Pylos II was a very successful transaction for all the parties involved,” stated Hideaki Ichinose, director of structured credit products at Merrill Lynch Japan Securities Co., Ltd. “The Bank of New York has provided a critical function in these transactions. The role of the receivables trustee is very important among others to structure this transaction in a most efficient way. Without The Bank of New York Cayman and London, the structure would not have worked well.”