A German consumer finance arm of Crédit Agricole is securitizing its third rated pool of unsecured consumer loans in a €1.3 billion (US$1.48 billion) transaction.
The deal through the Retail Consumer GP Germany trust includes €975 million in Class A notes with a provisional ‘AAA’ structured finance rating from Standard & Poor’s, backed by receivables from consumer loans originated by CreditPlus Bank AG in Germany.
CreditPlus Bank is a subsidiary of CA Consumer Finance, an arm of Crédit Agricole.
The Class A notes have 25.77% available credit support through excess spread, a cash reserve account and the subordination of €325 million in unrated Class B notes.
The deal includes a two-year replenishment period in which additional loans may be added to the collateral of the 2016 deal. CreditPlus has previously securitized deals in 2011 and 2013.
There is also a commingling reserve fund of €10 million (from a subordinated loan issued to the trust from CreditPlus Bank) during the replenishment period and setoff reserve accounts that will be funded if CA Consumer Finance is rated below ‘BBB’.
The loans themselves are prime loans with average weighted interest rates of 6.62% and an average principal balance of €6,488. The weighted average seasoning of the loans entering the pool is 14.7 months.
The transaction is expected to close on Oct. 25.
