The European Investment Fund, which is an arm of the EU’s financing institution, is now participating in Poland’s first leasing securitization of small – and medium-sized company (SME) related assets.
“This transaction marks the start of a new cycle in the European securitisation market where we expect originators from the new Member States to play an increasingly important role,” said Alessandro Tappi, head of guarentees and securitization at EIF.
The deal calls for EIF’s credit enhancement of the mezzanine notes in a securitization of lease receivables originated by Raiffeisen-Leasing Polska SA. EIF guaranteed the PLN 32.7 million mezzanine notes (approx. EUR8.6 million) underpinning a total portfolio of PLN 640 million (approx. EUR167 million).
EIF was involved in the structuring of the transaction together with the arrangers State Street Global Markets LLC and Raiffeisen Zentralbank sterreich AG (RZB). The European Investment Bank (EIB ) also participated in the transaction, investing PLN 188 million in the senior notes, alongside Galleon Capital LLC.
This leasing securitisation transaction refinances some 13,500 individual vehicle leasing contracts with Polish SMEs and micro-companies. The originator has the option to transfer further receivables to the securitization vehicle (ROOF Poland, Sp z o.o. – ROOF) on a monthly basis through a 3-year replenishment period.