The Mercado Alternativo de Renta Fija (MARF) has admitted to trading a new synthetic securitisation bond issue with a value of €66.5 million by the Fondo de Titulización PYMES Magdalena. It is the first such issue to be admitted to trading on MARF.
The Fund has been created by the Sociedad Gestora Santander de Titulización SGFT and with this operation a €1 billion-worth credit portfolio granted in Spain by Banco Santander or any of its subsidiaries will be covered.
Banco Santander and UniCredit Bank have acted as Co-Arrangers and Lead Managers for the bond issue and Santander de Titulización acts as a Registered Advisor in MARF.
Law firm Clifford Chance has provided legal advice on the English and Spanish legislation affecting this operation.
By using synthetic securitisation originators transfer the credit risk associated with a portfolio of assets they own through the acquisition of credit insurance instruments in the form of Credit Defult Swaps, without transferring the assets to a third party, such as occurs in traditional securitisation. In addition, and in accordance with the terms envisaged by the banking regulations, the transferring firm releases the regulatory capital linked to the portfolio and opens up the possibility of granting new credits.
Santander de Titulización SGFT is a management company incorporated in December 1992 and registered in the Special Registry of the Spanish securities watchdog - the CNMV. At present it manages Securitisation Funds with Fixed Income instruments issued for an outstanding amount of €34.1 billion.