Alantra advises Banco Montepio on the first Portuguese residential mortgages synthetic securitization

Nov 2022

Securitization

Portugal – Alantra has acted as sole advisor for Banco Montepio (“the Bank”), a Portuguese landmark bank, on its first funded synthetic securitization on a residential mortgage portfolio.

Established in 1844, Banco Montepio is the oldest financial institution in Portugal. It has purchased credit protection for the Mezzanine tranche through a financial guarantee from a portfolio of €880m residential mortgages. The Bank retains 100% of the Senior & Junior Tranches. The transaction structure includes 1bps of excess spread in use-it-or-lose-it format.

The economic rationale for the deal was to release total RWAs and increase the Bank’s CET1 ratio, the transaction is STS compliant.

One investor has been selected following a competitive process involving over 20 potential institutional investors. The Noteholders have taken 100% participation of the Notes, which are listed on TISE.

Alantra’s Portuguese and SFABS teams supported the client throughout the duration of the deal, from data remediation to closing.