Credit Agricole Consumer Finance Netherland prepped a 533.1 million ($727 million) securitization backed by a portfolio of unsecured revolving consumer loans granted to borrowers resident in the Netherlands.
The transaction, Kigoi 2013 B.V. ,is the second securitization of unsecured consumer loans originated by subsidiaries of Credit Agricole Consumer Finance Netherland B.V. CACF-NL is a wholly owned subsidiary of Credit Agricole Consumer Finance S.A., which is a wholly owned subsidiary of Credit Agricole S.A.
The floating rate, class A notes have been assigned a provisional rating of A1’ / A+’ by Moody’s Investors Service and Standard & Poor’s respectively. The ratings agencies will not rate the subordinate tranche that is sized at 155.7 million.
The structure also includes an unrated Further Advance Funding Facility (FAFF) provided by Aegon Bank N.V. (NR) which is subordinated to the class A notes. According to the Moody’s presale, the facility is undrawn at closing but may be drawn in the future up to a maximum amount of 184.8 million to fund the purchase of further advances made to existing borrowers of loans in the securitized portfolio.
The deal is a static structure unlike the issuer’s previous transaction, which included a four-year revolving period allowing for the sale of receivables from new loan contracts. However the loans have a revolving feature that allows exiting borrowers to be granted further advances on their existing loans. The issuer will purchase these loans using principal collections and drawings from the further advance funding facility.
As of Dec. 31, 2013, the provisional portfolio consists of 60,326 contracts and a current outstanding performing principal balance of approximately 688.8 million -- with a weighted average seasoning of 50 months.
