Third consumer loan securitisation fund sponsored by Banco Sabadell
On 17 September 2024, the Spanish Securities and Exchange Commission (CNMV) registered the prospectus of Sabadell Consumo 3 FT in its official registers, and the deed of incorporation and bond issue was executed the following day. This is the third securitisation fund of loans to finance consumer activities for individuals granted by Banco Sabadell.
Since the launch in 2019 of Sabadell Consumer 1 FT, the first in this family and the fund awarded as the best EMEA Structured Finance Issue (IFR Awards 2019), the market’s interest in this type of product has been steadily growing. This interest was once again evident despite the large number of transactions of similar assets that took place during September 2024, resulting in an over-demand for the different bond series by investors. This over-demand has caused the spread over the benchmark index falling to the lower end of the initially forecasted range, reducing the cost of capital of the transaction and prompting rating agencies to upgrade the final ratings of some of the tranches compared to those initially expected.
The capital structure comprises 6 collateralised tranches which will amortise on a pro rata basis, as long as no sequential amortization redemption event (which would be irreversible) has occurred, and a non-collateralised (Series G) aimed to finance the Initial Reserve Fund and the Set-up Expenses of the fund. The redemption of Series G has a scheduled calendar and therefore not linked to the performance of the portfolio.
We would like to mention the great work carried out by the parties involved in the origination of the fund: Banco Sabadell, Société Générale, BNP Paribas, Garrigues, Linklaters, A&O Shearman, Deloitte, PCS, EDW, Fitch Ratings and Moody`s, a joint effort that has allowed Europea de Titulización to set up and register its sixth securitisation transaction so far this year.
Europea de Titulización
September 2024