Nordax Finans AB is planning to issue bonds backed by Scandinavian consumer loans, according to Standard & Poor’s.

The deal, Scandinavian Consumer Loans IV, will issue notes denominated in Norwegian Krone. It marks a return for the issuer, which last tapped the securitization market in 2011.

The capital structure offers four classes of notes that have been assigned preliminary ratings ranging from ‘AAA’ to ‘BBB’.  There will also be an unrated tranche of class E notes. The notes will pay interest in arrears each month, at a rate of one-month Norwegian interbank offered rate (NIBOR) plus a margin. The margin will increase after the step-up date, which occurs on the interest payment date in June 2017.

S&P stated in the presale report that the size of deal is yet to be determined. The transaction is structured with a two-year revolving period. Deutsche Bank is lead manager in the deal. 

The pool is comprised of 11,857 promissory notes, with a total principal balance of NOK2.021 billion ($335 million). According to S&P, the largest single-borrower concentration being 0.03% and the top 50 loans make up less than 1% of the portfolio. The average outstanding loan balance is NOK170,455. 

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