Santander Consumer Bank plans to issue bonds backed by Norwegian auto loan receivables under its Bilkreditt trust.
Bilkreditt 7 Designated Activity Company is the seventh Norwegian public securitization transaction sponsored by Santander. The sponsor last issued off of the platform in September 2014.
A portfolio of NOK 6.61 billion ($764 million) auto loans will back the deal, which has not been sized, according to the Moody's Investors Service presale report. The pool is comprised of retail (88.2%) and commercial (11.8%) auto loans to mostly finance used cars (64.2%).
Loans have a weighted average remaining term of 77.4 months and have on average paid off 6.7 months of installments. The loans are either fully amortizing or amortize with a large final installment payment at the end of the loan's term. The maturity of the balloon loans is typically shorter (36 months or less) than the fully amortizing loans and only make-up 2.3% of the pool.
Moody's assigned preliminary 'Aaa' ratings to the class A notes and'A2' ratings to the class B notes. The notes are structured with a legal final maturity date of March 2030.
Barclays is the lead manager.