Agos has completed a cash SRT (significant risk transfer) securitization backed by consumer loan portfolios, for a total amount of approximately EUR1bn.
This is the first transaction carried out by the financial intermediary for both liquidity and credit risk transfer purposes. The senior and mezzanine notes received ratings from Morningstar DBRS and Fitch and were placed with institutional investors (net of a portion retained by Agos).
A&O Shearman handled the drafting of the legal documentation as well as the procedure with the Bank of Italy for the recognition of the SRT, assisting the arrangers Banca Akros (Banco BPM Group) and Crédit Agricole Corporate and Investment Bank’s Milan branch, as well as the joint lead managers Banca Akros (Banco BPM Group), Bank of America, Crédit Agricole Corporate and Investment Bank, Santander CIB.
The team was led by partner Pietro Bellone and senior associate Chiara D’Andolfo, supported by trainee Luca Marchesini. A group of professionals based in Milan and London provided advice on English law aspects. Counsel Elia Ferdinando Clarizia managed the tax aspects of the transaction.
Pietro Bellone, partner, commented: “This transaction confirms the growing focus of financial intermediaries on capital optimization tools such as cash SRT securitizations. These structures are particularly attractive for large-scale originators in the current environment, which is characterized by strong demand for mezzanine tranches and favorable market conditions.”