Banca Valsabbina concluded an 860 million euro securitization transaction of loans deriving from mortgage and unsecured loans disbursed to SMEs.
The transaction was managed by FISG, a subsidiary of Banca Finint, as arranger. Hogan Lovells provided legal advice.
Through this securitization, Banca Valsabbina intends "to further strengthen its endowment of financial instruments available for refinancing operations at the European Central Bank."
Going into the details of the operation, the first step will be to transfer a loan portfolio of 424 million deriving from 2.200 unsecured mortgage loans to the securitization vehicle company. The latter, for its part, issued two slice of ABS securities (Asset Backed Securities) with so-called structure partly paid: one tranche senior for a nominal amount of 542,2 million euros, and one tranche junior for 318,3 million euros, the latter not endowed with rating.
Subsequently, Banca Valsabbina will proceed with the sale of a second portfolio, equal to 400 million, with which the first part of the operation will be concluded.
