BME’s Fixed Income market, MARF, has listed a new synthetic Securitisation Fund called Santander Consumer Spain Synthetic Auto 2018-1. With this operation, Grupo Santander registers another securitisation issue in MARF, on this occasion, to cover a loan portfolio worth 1.01 billion euros granted by its subsidiary bank Santander Consumer EFC, earmarked for the acquisition of new and used vehicles.
Banco Santander, through its Santander Corporate & Investment Banking division, has acted as Arranger and Lead Manager of the placement among qualified investors. Santander de Titulización is the Fund Manager and the Registered Advisor with MARF, while Clifford Chance has been the Fund Manager’s Legal Advisor with respect to English and Spanish Law.
The synthetic securitisation allows originating entities to transfer the credit risk associated with an assets’ portfolio through the acquisition of credit insurance via Credit Default Swaps -CDS-, and without the need to transfer ownership of the assets to a third party, as is the case with traditional securitisation operations. Additionally, in the case of synthetic securitisations of loans granted by financial institutions - and as long as the circumstances envisaged by banking regulations are met - the transferor releases the regulatory capital linked to the portfolio and, therefore, opens up the possibility of granting new credits.
Santander de Titulización, SGFT, is a Securitisation Fund Management Company incorporated in December 1992 and registered with the Special Register of the CNMV –the Spanish securities market supervisor. Santander de Titulización structures all types of funds: RMBS, SMEs, Consumer, CLOs, ABCPs, etc ... and currently manages Funds that hold fixed income instruments issued with an outstanding balance in excess of 34 billion euros.