FGA Capital, a joint venture between Fiat and Credit Agricole, is gearing up to sell 437.5 million ($553.2M) of senior rated securities backed by Italian Auto loans.
The deal, A-Best-10 has been assigned preliminary ratings by DBRS. On offer is a AAA’ rated senior tranche with a weighted average life 1.65 years and 22.5 million of 3.85-year, class B notes rated A’.
The collateral pool is comprised of 44,235 loans corresponding to 44,182 borrowers. The loans have an average loan to value ratio of 86% and average original term of 4.56 years. Most of the loans have a remaining term of four years.
Unicredit and JP Morgan, along with Credit Agricole, have been mandated to lead the deal.
Fiat and Credit Agricole each hold a 50% share in the FGA Capital. The Italian lender began providing motor financing for non-Fiat vehicles in July 2008 and within a year took over all retail and dealer financing and long-term contracts for Jaguar and Land Rover. The agreement covers nine countries including the UK, Germany, France, Belgium, Austria, Italy, the Netherlands, Spain and Portugal.
In October 2009, the lender replaced Daimler Financial Services as the main financial services company for all Chrysler brands covering 12 European countries.
As of end-2013, FGA Capital’s portfolio totaled just under 15 billion with retail financing and leasing representing 75% and dealer financings worth 3.8 billion or 25%. Italy continues to be the company’s largest market comprising 40% of the portfolio followed by Germany (19%), the UK (18%), France (8%) and Spain (4%). The remaining 11% is split between eight European countries most notably Switzerland and Poland.
