Investec has set up its first SME lease-backed note program backed by leases made to small and medium UK businesses, according to a  Moody's Investors Service report.

Moody's assigned the deal dubbed Temese Funding 1 Plc, preliminary ratings. 

The £262 million SME loan securitization will offer investors £226 million of ‘Aaa’-rated class A notes due 2021; £16 million of class B notes rated ‘Aa2’ due 2021; £11 million of class C notes rated ‘A2’ and due 2021; and £9 million class D notes rated ‘Baa3’ also due 2021.

Investec’s portfolio is made up of £262 million par value of primarily secured leases from small SMEs located in the U.K. and it consists of 34,527 leases to 29,548 individual borrowers.

According to Moody’s, once the transaction closes, no further leases may be added to the portfolio during the life of the transaction.


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