Alantra advises French private bank Milleis Banque on its first public true sale securitization, FCT French Prime Cash 2023

Dec 2023

Securitization

London – Alantra has advised Milleis Banque on its first rated cash securitization of a performing residential mortgage portfolio. The Class A notes achieved an AAA (sf) rating from both Fitch and S&P.

Milleis Banque stands as the third-largest independent entity in French wealth management following its merger with the Cholet Dupont-Oudart (“CDO”) group in February 2023. Catering to nearly 60,000 families, Milleis Banque oversees €13 billion of assets. Milleis Banque also collaborates closely with its clients, crafting personalized and comprehensive wealth management strategies that align seamlessly with their unique projects and aspirations.

FCT French Prime Cash 2023 represents a true sale securitization of residential loan receivables (“home loans”) originated by Milleis Banque. The transaction comprises a Senior note (91%, initially retained) rated AAA (sf) by Fitch/S&P, alongside a non-rated subordinated Junior note (9%, retained). The transaction structure is further enhanced by a reserve fund equivalent to 1.5% of the Senior note. This reserve is earmarked to address any potential shortfalls in the payment of senior expenses, interest on the Class A notes, and Class A PDL.