June 21, 2012
RCI BANQUE: ISSUANCE OF FIXED RATE AUTO ABS FOR 750 MILLION EUROS
RCI announces the issuance of a securitization backed by auto loans granted in France.
FCT Cars Alliance Auto Loans France 2012-1 issued € 750 million of notes rated AAA by S & P, Moody's and DBRS, bearing a 1.379% coupon with a weighted average maturity of 1.09 years.
This static fixed rate format, still uncommon in Europe, answers investor's preference for simple structures and allows to avoid the use of a securitization swap, which introduces bank counterparty risk in the transaction. Originally thought of around € 400 million, the transaction has been increased to € 750 million thanks to an order book above € 1.4 billion.
In an environment of tension on bank ratings which limits the number of institutions with suitable credit quality to offer securitization swaps required for the issuance of floating rate securities, RCI Banque demonstrates, by the success of this operation, its ability to maintain access to the securitization market.
