Fintech
Illimity Bank Sells 217 Million of Performing Loans to Companies to Colt spv
The restructuring of the deal, which was conducted in mid-December 2023, involved the issue of three new tranches of asset-backed securities, all with legal maturity in February 2040, again subscribed by Illimity Bank, with whose proceeds Colt spv acquired from illimity Bank the new portfolio of performing loans backed by guarantees from SACE and the SME Guarantee Fund.
Illimity Bank has restructured and expanded the securitization of performing loans deriving from loans granted by the SME and mid-cap bank carried out in December 2022, through the special purpose vehicle Colt spv srl. The arrangers of the operation were JP Morgan and Illimity Bank, who were in turn assisted on a legal level by the Chiomenti firm.
The operation involved, on the one hand, the repurchase by Illimity Bank of seven loans classified as past due or as UTP for a total gross value of 82.8 million which had previously been sold to Colt spv as part of the first operation; and on the other the purchase by Colt spv of a new portfolio of loans originating from Illimity Bank for a total gross value of 217.7 million.
In December 2022 a portfolio with a nominal value of approximately 530 million euros was securitized, consisting of 82 loans granted by illimity itself to 69 companies , assisted by guarantees issued either by SACE (76.2% of the portfolio) or by Central Guarantee Fund (23.8%), in what was the first securitization operation in which the SACE guarantees were also transferred.
Read more on the subject and find the most important business news of the day with the Born2Invest mobile app.
The abs securities were then all subscribed by Illimity Bank
At the time, the spv had issued three classes of securities: 375 million euros of senior tranches (Class A) with ratings of A from DBRS , A1 from Moody’s and A from ARC Ratings which pays a coupon equal to the 3-month Euribor rate plus 2%; 79.1 million euros of mezzanine tranche (Class B) with a B rating from DBRS, B2 from Moody’s and B+ from ARC, which pays a coupon equal to the 3-month Euribor rate plus 2.7%; and 116 million euros of junior tranches (Class J) without rating and with variable coupon with a spread of 5%.
The senior and mezzanine securities were then admitted to trading on the ExtraMOT PRO segment of the Italian Stock Exchange.
The restructuring of the deal, which was conducted in mid-December 2023, involved the issue of three new tranches of asset-backed securities, all with legal maturity in February 2040, again subscribed by illimity Bank, with whose proceeds Colt spv acquired from illimity Bank the new portfolio of performing loans backed by guarantees from SACE and the SME Guarantee Fund, guarantees which also in this case were transferred to the spv together with the corresponding credits.
In detail, Colt spv issued: 113.7 million euros of senior abs (Class A-2) which obtained the AA rating from DBRS , Aa3 from Moody’s and AA- from ARC Ratings ; 20.3 million euros of mezzanine securities (Class B-2) with ratings, respectively, B, B2 and BB; and 4.14 million unrated junior abs. The senior and mezzanine securities of the second series were in turn admitted to trading on the ExtraMOT PRO segment of the Italian Stock Exchange.
At the end of October the securitized portfolio had a gross value of 583.7 million , distributed between 115 loans and 81 debtors. The portfolio is very concentrated: loans to the top 10 debtors represent 36% of the overall value. 63% of the value relates to the credits transferred by illimity with the 2022 operation and the remaining 37% relating to the second operation.
__
(Featured image by Tumisu via Pixabay)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in Be Beez, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us
-
Crowdfunding2 weeks ago
Bank of Italy Now Partially Unblocks Lemonway
-
Impact Investing6 days ago
Investments in New Recycling Technologies in Italy Are Increasing, but Regulatory Contradictions Must Be Overcome
-
Crowdfunding2 weeks ago
ClubDeal Digital Contributes to Flyted’s Closing of the First Phase of its Series A Round
-
Crypto3 days ago
Solana Surges: Trump’s White House Win Fuels Anticipation for SOL ETFs