RCI Banque the financing arm for Renault Nissan Alliance hired BNP Paribas, Societe General and HSBC to manage a 644 million ($820M) securitization of French auto loans.
The notes will be issued from the RCI Banque's Cars Alliance shelf, according to a DBRS presale report. DBRS and Standard & Poor’s expect to rate 600 million of class A notes, AAA’/ AAA’. The class B notes will be rated AA’/ A+’. The notes are due Jan. 25, 2026.
The transaction is structured with a twelve month revolving period that end one year after the transaction’s close, in October 2015.
The collateral pool is comprised of 146,520 fixed-rate contracts that are paid monthly to French retail and commercial clients for the purpose of buying either new or used cars, mainly manufactured by the Renault Nissan Alliance group.
Some of the loans ( 25% of the pool) have low, fixed monthly payments and require a large payment at the end of the term. Borrowers with these loans may experience a payment shock at maturity due to the larger final installment. S&P stated in the presale, that as a result, it applied an additional stress to these final payments to account for this risk.