Italy’s Alba Leasing is marketing a €767 million ($820 million) securitization of payments on leases extended to Italian small and medium-sized enterprises (SMEs) and individual entrepreneurs, according to Moody’s Investors Service.

The deal, called Alba 7, will distribute the €225 million A1 tranche and will pre-place a €200-million A2 tranche and the class B tranches which total €100 million.

Moody’s assigned preliminary ‘Aaa’ rating to the class A tranches and preliminary ratings of ‘Baa1’ to the class B tranches. The class A1 notes benefit from total credit enhancement of 60%, the class A2 notes benefit from credit support of 43.5% and the class B1 and B2 notes benefit from credit enhancement of 24.4%.  

The transaction is also structured with a €179.56 subordinate, unrated class J tranche. All the notes have a final maturity date of September 2038.

Banca IMI SpA and Societe Generale are the lead managers.

Alba 7 pools loans worth a total €784 million, with a weighted average remaining term of 6.55 years and an average one-month seasoning. In terms of industry concentration, the largest two sectors represent 33.2% of the pool. Building and real estate is the largest with 21% exposure, according to Moody’s industry classification. In terms of exposure to lessee, the granularity is relatively high with top lessee and top 5 lessees group exposure of 1.04% and 3.84%, respectively.

Focussed exclusively on leasing, Alba Leasing operates in Italy's North.

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