BNP Paribas Personal Finance, a subsidiary BNP Paribas, plans to resume securitizing personal consumer loans via its Noria platform.
The bank will issue €1 billion ($1.05 billion) of bonds backed by euro denominated loans issued to French borrowers.
Noria 2015 will offer €800 million of Moody's Investors Service rated 'Aaa' notes that benefit from 21.5% credit enhancement. The notes are due November 2034. There is also a €200 million tranche of unrated class B notes that will be retained by BNP.
The last time BNP issued from its Noria platform was in 2009 via Compartment Noria 2009-1. That deal also offered €1 billion in unsecured consumer loans,
Noria 2015 is comprised entirely of fixed-rate loans; the 2009 transaction had a mix of fixed- and floating-rate loans. A pool of fixed-rate loans has no exposure to interest rate risk. The structure includes a two-year revolving period where additional loans may be added to the trust. The loans must comply with a set of eligibility criteria that protects the pool from deterioration.
Loan terms range from 12 months to 84 months have a weighted average original term of 5.8-years, and borowers have on average made nine months of payments. Loan payments are withdrawn on a monthly basis by direct debit
Most of the pool (91.6%) is comprised of personal loans and the rest are equipment loans. Moody's noted in the presale report that although the loans are personal finance loans, none are structured with a revolving credit line, or are used to consolidate debt, to finance auto purchases or homes.