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National Australia Bank will launch a repackaging securitisation program, called SCRIPT Securitisation Pty Ltd ("SCRIPT"), in January 2002 with an initial A$1 billion program limit. As a repackaging securitisation vehicle, SCRIPT enables the National's wholesale investors, both domestically and globally, to gain exposure to a variety of repackaged assets with varying pay-off profiles, denominated in the currency of their choice. [For example SCRIPT could purchase a US Dollar bond and use a currency and interest rate derivative to swap it into Australian Dollars and issue a SCRIPT Australian Dollar note.] A panel of experienced and respected external providers has been selected to support the program. The National has been selected as Program Manager, while Perpetual Trustees will act as Security Trustee and Registrar, Issuing and Paying Agent and all management and administration activities for SCRIPT will be handled by National Australia Managers Limited (NAML). SCRIPT is an investor-driven vehicle, where the investor chooses the term of the deal, the structure of the investment and the currencies in which debt instruments are denominated. Based on these requirements, the Program Manager structures the debt instruments to be issued. It is envisaged that SCRIPT will issue debt instruments in Australia, New Zealand, Asia, Europe and the United States. The launch of SCRIPT enhances the National's capability in securitised investment programs. Last year, the National launched a multi-seller securitisation program, Quasar, with a $3 billion funding limit. Matt Blackwell, the National's Manager of Structured Investment Products, said repackaged securitisation programs were gaining in their popularity with clients. "Many investors are now seeking innovative structures to provide enhanced returns that are not available from traditional investment products," said Matt. "Competition in the investment marketplace is such that it is important for investment managers to achieve enhanced returns on their portfolios to differentiate themselves and repackaged paper will be effective in achieving this goal. "Clients can achieve greater credit diversification in their portfolios by investing in debt instruments issued by vehicles like SCRIPT. For example, multinational companies that issue debt in foreign capital markets, but not in the domestic capital market, can now be introduced to local investors, denominated in Australian dollars," added Matt. Repackaging programs, such as SCRIPT, also give investors the ability to take exposure to credit derivatives in either a single name or multi-name format, structured into an investment note rather than a derivative format. This feature alone should make these structured notes appealing to the professional investment community. SCRIPT will not be rated, however, individual SCRIPT Series can be rated at the request of the investor. It is envisaged that SCRIPT will issue its first Series of debt instruments by the end of January 2002.
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