Carrefour Banque, the captive consumer finance arm of the French retailer Carrefour S.A., Europe's largest retailer, plans to sell €400 million ($454 million) of securities backed by credit card receivables.

Carrefour (60%) and BNP Paribas Personal Finance (40%) jointly own Carrefour Banque.

The deal, called Master Credit Cards Pass Compartment France Series 2015-1, is jointly managed by Natixis, Banco Santander and HSBC Bank.

On offer are €400 million of ‘AAA’, Standard & Poor’s rated notes, due October 2027. The notes benefit from credit enhancement of 27.23% and are supported by a subordinate B tranche sized at €118 million, which S&P will not rate.

The transaction pools credit cards with a weighted average credit limit of €4,570.88 and an average current outstanding principal balance of €1,606.92.

On average, the accounts have paid for 11 years with an average monthly interest rate of 14.21%.

More than half of the transaction pool is comprised of borrowers that owe less that €5,000, 31% of borrowers owe between €5,000 and €10,100 and 8% of the pool owe more than €10,000.

This is Carrefour Banque's third credit card receivables securitization and its fifth consumer securitization. The issuer will use the proceeds of the series 2015-1 notes to repay the existing series 2013-1.

 

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