Landesbank Baden-Württemberg (LBBW) has set up a new ABCP program Weinberg Capital. The new conduit will issue ABCP in the European market up to a maximum program limit of €5 billion ($7 billion).
The Weinberg Capital program has been established as the successor to Lake Constance Funding Ltd., an existing 'prime-1'-rated multiseller program also sponsored by LBBW.
Lake Constance currently funds a portfolio of 23 term and trade receivables transactions. The sponsor intends to replace the funding of each transaction currently financed by Lake Constance with ABCP issued by Weinberg Capital.
The transfer of all transactions currently in Lake Constance is expected to be completed by end of February 2010. The sponsor has indicated that once the latest maturing ABCP issued by Lake Constance has been repaid, LBBW may wind down the vehicle.
All asset transferred from Lake Constance will be funded in Weinberg Capital on a fully supported basis, with liquidity support initially provided by LBBW.
Furthermore, the sponsor's intention is to have all new transactions financed by Weinberg Capital be fully supported, by means of liquidity facilities provided by banks rated 'prime-1' by Moody’s Investors Service.