Things are brewing in Portugal. Banco Comercial Portugues S.A. (BCP) has launched its second deal this month, Nova Finance 2 - a 366 million consumer loans securitization.

The deal is backed by a pool of receivables related to consumer-finance loan contracts originated by Nova Rede, an origination channel of BCP. According to Standard & Poor's there deal has a credit support for the note holders which is provided by significant excess spread, the subordination of junior classes, and the cash reserve fund that will build to 4%.

Deutsche Bank is arranging the transaction. S&P assigned preliminary ratings to the three classes last week. The A-class, 331.2 million, was rated triple-A, the B-class, 21.9 million, was rated double-A and the C-class, 12.9 million, received a single-A rating.

This is the second consumer loan securitization by the bank. Nova Finance 1 made history in 1998, when it launched its first consumer loan securitization, marking the first-ever Portuguese cross-border transaction.

Earlier this month, BCP also launched Chaves Funding 2, another consumer loans transaction. Chaves was also a repeat issuer. Both Nova Funding 2 and Chaves Funding 2 were in the market prior to the securitization law that was originated in November 1999.

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