BANIF Banco Internacional do Funchal S.A plans to place 875 million ($1.12B) of securities backed by a pool of current accounts and term loans that it granted to Portuguese self-employed and small and midsize enterprises (SMEs), according to Standard & Poor's.
The bank has selected Deutsche Bank to manage its latest deal, Atlantes SME No. 4. The issuer was last in the market at the beginning of the year with Atlantes SME No., which was managed by StormHarbour Securities.
The pool is comprised 7,766 of fixed-rate and floating-rate loans, according to a Standard & Poor’s presale report. The current accounts are revolving facilities. They can be renewed at the end of their stated maturity, which is typically either less than, or equal to, 12 months. S&P said that there is some refinancing risk associated with these loans.
The loans have a weighted average seasoning of 37.64 months and a weighted average remaining term of 73.09 months. Approximately 30% of the loans are secured by a property and the remaining loans (69.5% are unsecured loans.
S&P expects to rate 465 million of class A notes A-’ and 55 million of class B notes BBB’. The capital structure will features 407 million of unrated notes. The notes are all due Dec. 26, 2043. The deal is expected to close this month.