The German subsidiary of Spanish lender Santander Consumer Finance is planning its first auto loan securitization of the year.

The €600 million (US$677 million) SC German Auto 2017-1 UG will issue €558 million of Class A senior notes with preliminary triple-A ratings from both Moody’s Investors Service and S&P Global. The notes carry a floating rate that will be 0.4% above Euribor. They benefit from 8% credit enhancement, consisting of 7% subordination of the €42 million of unrated Class B notes, which Santander will hold in order to comply with risk retention rules, and a 1% reserve fund.

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