Credit Agricole Consumer Finance Nederland plans to securitize a pool of unsecured, Dutch consumer loans worth 1.07 billion ($1.14 billion) via a transaction called Ochiba 2015, according to Standard & Poor’s.
The loans have a maximum size of 100,000 and a weighted average term of 1.6 years and pay on average a 7.11% interest rate. Loans that pay only interest comprise 40% of the pool; the rest are amortizing loans, which pay interest and principal.
S&P plans to assign an AAA’ rating to 346.5 million of class A1 notes 126 million of class A2 notes. The notes are structured with credit support of 57% and are due November 2075.
The transaction will also offer 126 million of AA’ rated class B notes with credit support of 45% and 126 million of Class C notes with 33% credit support. There is also an unrated, 346.5 million tranche of subordinate notes.
The collateral comprises unsecured consumer loans that Credit Agricole Consumer Finance Nederland B.V.'s subsidiaries originated for its Dutch customers. At closing, the collateral will comprise approximately 43,000 interest-only and standard amortizing loans, totaling 1.05 billion.
There is an 18-month revolving period where additional loans and further advances receivables may be added to the pool.
Credit Agricole Consumer Finance Nederland is active in the Dutch consumer credit market. Most credit applications are intermediated through third-party brokers (98.9%) and a relatively small portion of the credit applications are submitted from customers online. The third-party brokers are entitled to receive commission payments for the loans that they originate, which are paid outside of the transaction's cash flows, according to the presale report.
