BBVA revives the public securitisation market in Europe after the COVID outbreak

The Spainsh regulator, Comisión Nacional del Mercado de Valores (CNMV), registered on Tuesday June 9 the fifth of Auto loans securitisation fund granted by BBVA. The operation whose capital structure consists of seven tranches of bonds (the Series Z as fund reserve) and an amount of €1.105 bn, has achieved ratings in its most senior Series very close to the máximum credit rating (Aa1, AA, AA), by three of the main agencies.

After the success of BBVA Consumer Auto 2018-1 FT, an operation partially placed on the market and that this year has obtained the STS seal (the first Spanish securitisation “legacy”), BBVA was facing the Consumer Auto 2020-1 project with the intention of placing 100% of the bonds amongs investors and thus achieve the double objective of obtaining  financing and risk transfer.

However, the COVID crisis outbreak during the origination process of the fund, the numerous legislation emerged regarding legal moratoriums, sectoral decisions and the investor widespread holdback in particular in securitisation bonds, imposed significant challenges to carry out the project as it was originally conceived.

The teams involved, legal advisors (Garrigues, Linklates), directors, arrangers and the seller (Deutsche Bank, BBVA), auditors (Deloitte), the third party verifier (PCS), together with Europea de Titulización (EdT), did not lose focus and continued to provide solutions to problems and uncertainties that arised.  The objective was clear, build a structure that would be transparent and attractive to provide comfort to investors and robust enough for the rating agencies (Moody’s, DBRS, S&P) to award the highest ratings.

With all these assertions and, taking advantage of the investment window that opened at the beginning of June, BBVA Consumer Auto 2020-1 FT was announced to the market and with undoubted success fully placed amongst investors, even exceeding demand for bonds from the issuance.

Europea de Titulización

June 2020

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