BBVA launches its second leasing fund
Banco Bilbao Vizcaya Argentaria returns to Leasing assets securitisation after 13 years since its last fund of this type, BBVA Leasing 1 FTA, still in force and under management by our Management Company.
On this occasion, BBVA opted for its traditional structure when it comes to the issue of Bonds with the aim of being discounted in the ECB, that is, maximization of a single series of bonds, Tranche A, plus for the credit enhancement, a Loan B and Reserve Fund.
Bonds in the amount of € 1,743bn have been issued, backed by a portfolio of € 2.1bn of credit rights derived from financial leasing contracts, of which 95% are for noncurrent asset types. DBRS and Moody’s have assigned the AA (low) and Aa3 ratings respectively to the bonds, which are listed on AIAF, and have been deposited with Iberclear so that they are recognized at the momento of issuance as eligible collateral for the Eurosystem’s monetary policy.
The apparently simple structure and asset type have not meant that the origination process was also simple. The new regulations on moratoriums (RDL 26/2020) had to be incorporated in record time to the documentation. The proximity to the expected registration date in which this legislation came into force compelled the teams to make additional efforts, thus, thanks to the legal advisors of the fund, Cuatrecasas, the originator, BBVA, the audit team, Deloitte, together with the Management Company and the constant interaction with our Regulator, it was possible to set up the fund in a really short time.
Europea de Titulización, S.A., S.G.F.T.
July 2020