Alba Readies €1.03B of Italian Lease ABS

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A mix of esoteric lease receivables from real estate, equipment and auto transport assets is being securitized through a €1.03 billion notes offering from Alba Leasing, an Italian corporate credit finance firm.

The trust, Alba 8 SPV S.r.l, will issue a €335.3 million tranche of class A1 notes and a  €304.8 million tranche of class A2 notes. Both pay floating rates of interest and have been assigned ‘Aa2’ structured finance ratings by Moody’s Investors Service.

Moody’s also rated €127 million in class B asset-backed notes (‘A1’) and €45.7 million in class C notes (‘Ba3’), but is not rating €213.3 million in class J notes that were issued in the Alba 8 SPV S.r.l. cash securitization trust.

All of the notes mature in 2039.

Alba Leasing offers leasing services to individual entrepreneurs and small/medium-sized enterprises in Italy. Nearly all of the 10,014 lessees in the pool have contracts to lease assets belonging to different sub-pools of the transaction: 27.6% are real estate-related; 53.16% for equipment; and 17.8% for auto transport.

A small sliver of the contracts (about 1.5%) provide receivables from aircraft, ship or train leases. The total number of contracts is 15,046, according to Moody’s, with a principal portfolio balance of €1.02 billion Euros.

Alba’s ABS is static, with no further receivables to be added to the trust.

All of the contracts were originated between 2010-2016, with a weighted average seasoning of nearly 2 years and remaining terms of approximately 6.3 years. The weighted average spread is 3.22% for the floating rates attacked to more than 98% of the notes.

Alba Leasing and the European Investment Bank were the lead underwriters. Societe Generale’s investment banking arm was the arranger.

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