The Senior (Class A) and Mezzanine (Class B1) securities under the securitization of salary/pension-backed loans (CQ), Quinto Sistema Sec. 2017, have been rated by Moody’s (Aa2 and Baa3, respectively) and by DBRS (A-high and A-low, respectively), and have been admitted to trading on the Luxembourg Stock Exchange.
Senior class securities are eligible as collateral for Eurosystem refinancing operations.
Quinto Sistema Sec. 2017 is Banca Sistema’s second ABS transaction with salary/pension-backed loans to be rated. The deal, which to date amounts to roughly 250 million euro (of which c. 191 million euro of Senior securities), in the next weeks will include the loan pool of the first securitization, and will thus reach approx. 400 million euro. Then a ramp-up period will follow, to be completed in February 2019, targeting a maximum amount of 660 million euro.
This deal will enable Banca Sistema to keep its CQ loans business growing, optimizing the funding structure dedicated to this segment.
Banca IMI and Banca Sistema served as joint Arrangers, while the Law Firm Jones Day advised the parties in its capacity as transaction legal counsel. Banca Sistema also hired Securitisation Services (Gruppo Banca Finanziaria Internazionale) and BNP Paribas Securities Services.