Germany’s Bank11 fr Privatkunden und Handel GmbH (Bank11) is securitizing €550 million in auto-loan backed securities in a series of two classes of notes through its Revocar ABS platform.
Standard & Poor’s has assigned an ‘AAA’ structured-finance rating on the Class A notes of Revocar 2016 UG, totaling €467.5 million and carrying a 0.37% interest rate. The unrated Class B notes total $82.5 million, with a 2.20% interest rate.
The portfolio consists of Bank11’s fully originated loans, which are fully amortizing and with 7.4% of the pool comprised of loans with large final balloon payments. The 42,493 loans in the pool have an average balance of €12,943, after eight months of seasoning and with 55 months remaining on average.
The transaction is the third publicly rated securitization by Bank11, which will include a credit enhancement consisting of 15% subordination, a 0.68% cash service and an initial excess spread of 183 bps over the final rate. A €3.74 million reserve account will be available to pay liquidity shortfalls. S&P notes it is similar in structure to the predecessor Revocar 2015 UG from April 2015, but more than half the pool (56.8%) consist of the new unconventional “EvoSupersmart” loan product that offers an optional adjustment-rate interest balloon payment extension for borrowers on loans.
Bank11 is a startup institution (founded in 2011) with a focus on providing auto loans to private and commercial customers as well as car-dealer financing and consumer credit. S&P notes the company has gained “substantial market share” in the German non-captive financing market.