A Dutch mortgage lender is planning a second “green” securitization of €400.7 million in home loans for properties meeting certain energy efficiency and low-carbon footprint guidelines.
Green Storm 2017 B.V. will inssue five classes of Euro-denominated mortgages originated and serviced by Obvion N.V., a subsidiary of Rabobank with 41 previously rated European residential mortgage securitizations.
The amount of the bonds is to be determined, although the triple-A rated Class A notes will encompass 93.51% of the pool, according to presale reports from Moody’s Investors Service and S&P Global Ratings. The pool will include 30-year, mostly fixed-rate loans made to 1,744 prime borrowers, with an average seasoning of 5.34 years. No loans are in arrears as of the pool’s cut-off date.
Those notes will carry a coupon of 60 basis points over the negative-interest Euribor rate.
The deal was arranged by Rabobank, and co-managed by Rabobank with Société Générale.
Obvion, a monoline lender of Dutch residential mortgages, has a small market share of just 3.8% with €32 billion in its managed portfolio. But it was also the originator of the first ever European preferred pooling of green homes last year. The company has adopted a mission of increasing and promoting energy efficient housing in The Netherlands.
For the Green Storm platform, Obvion selects the top 15% of new residential homes in its portfolio qualifying for accepted energy labeling standards that have been in place since 1995. Green Storm 2017 B.V. will have a five-year revolving period in which Obvion can add eligible loans.
The notes will have credit support from a non-amortizing reserve fund that will total 1.02% of the final tally of Class A, B, C and D notes, and will grow up to 1.3% of the original balance through an available 0.5% excess spread.
Moody’s stated the deal’s strength include the excess margin as well as an interest-rate swap arrangement provided by Obvion, plus an undetermined commingling guarantee that will be provided by Rabobank.