Banking and Credit Weekly Bulletin | 13 October 2021

RMBS – Irish non-bank lender Dilosk markets its fifth RMBS (DebtWire)

• Dilosk, the Irish non-bank lender, is marketing its latest securitisation of owner occupied and buy-to-let mortgages, Dilosk RMBS no. 5. Natixis is sole arranger and joint lead manager with BNP Paribas

Banking – Finance Ireland, the largest non-bank lender in Ireland, sees slump in profits in FY2020 (The Irish Times)

• Finance Ireland’s pre-tax profits dropped to €9.6m from €14.1m in FY2019
• Total new lending declined by 18% last year to €654.7m
• Finance Ireland’s retail mortgage division saw new loans rise to €283m, equating to about 3.3% of €8.4bn of lending in the Irish home loans market in 2020

ABS – Senior tranche of Atom Bank’s Elvet Mortgages 2021-1 is being marketed (Debtwire)

• The co-arranger BNP Paribas and Citi have begun to market the STS UK prime RMBS

ABS – Oplo’s c. £200m consumer loan ABS, named Polo Funding 2021-1, is being priced (Debtwire)

• Split rated senior tranches at Aaa/A+ (Moody’s/S&P) of c. £126m are priced at 100bps over Sonia, in line with expectations. The price is 34bps higher than the launch spread of Twin Bridges 2021-2 and 13bps higher than Castell 2020-1

ABS – Luigi Luzzatti and Prelios agree to create a new fund for the management of SME UTP exposures (Prelios)

• Luzzatti banks will be the main contributors to the fund, which aims to bring debtors back to performing status through proactive management and restructuring
• The envisioned AuM target is €250m, with launch envisioned by year end

ABS – Zenith and GMA complete real estate securitization based on new law art. 7.2 (Bebeez)

• The transaction has been completed through the vehicle FARA real estate SPV and involves real estate assets in Salò and Pino Torinese
• The project envisions redevelopment and value-add activities to be carried out on the assets

RMBS – Blackstone is selling a RPL & PL portfolio derived from the Hercules portfolio, acquired in 2014 (Vozpopuli)

• Blackstone is now selling the previously managed portfolio Hercules, which was acquired from Catalunya Caixa in 2014 for c. €3.6bn
• The portfolio is comprised of 40,000 performing mortgage loans
• Morgan Stanley and Carval are the strongest bidders in the selling process

RMBS – Blackstone looks to sell a portfolio of residential rental assets in tandem with their SOCIMI Testa (CincoDías)

• The investment fund is hoping to sell for €300m in this transaction. The operation is carried out by Socimi Testa
• The portfolio comprises 800 houses with an average market price of c. €400.000

Regulatory – Bank of Spain is asking banks to monitor state-backed loans (Reuters)

• Last year, the government approved up to €100bn in ICO liquidity lines, where the Spanish government guaranteed up to 80% of the loans that were channelled through banks to SMEs and self-employed
• The deputy governor said assets under special surveillance, or considered subject to heightened credit risk, had increased in recent quarters but were still at a “relatively low level”

ABS – Elan Woninghypotheken to bring €518m STS Dutch RMBS securitisation to market (Debtwire)

• Of the seven tranches, only the €492m senior tranch will be offered publicly, triple-A rated by both Fitch and Moody’s