Spain debt

Cetelem reopens the securitized debt market

Setalem took advantage of the liquidity window opened in September by financial institutions to reopen a securitization market which is not yet closed. The consumer credit subsidiary of BNP Paribas offers bonds for an amount of 600 million euros, which are guaranteed by loans for the purchase of automobiles. The issue is managed by Intermoney through the Autonoria Spain 2022 fund, while Setalem and BNP Paribas act as underwriters for part of the issue. The rest is reserved for qualified investors.

With this operation, Cetelem consolidates these credits and resells them to investors in a single bond in order to be able to remove them from its balance sheet. Most of these loans, up to 493.5 million, have high credit ratings — AA1 for Moody’s, the second highest rating, and AAA — for Fitch. The others, divided into five tranches and totaling 87 million euros, have low credit ratings and only 19.5 million do not have ratings from rating agencies. In case of default, the loss will be taken as the first place and will move up the ranks – by category G of the issue – without rating.

54.25% of the credit included in the securitization corresponded to the financing of new cars and motorcycles and 31.2% to used cars less than five years old. Only 5.9% of the loans correspond to the purchase of motorcycles. The bond brochure indicates that the valuation of these credits takes into account a depreciation of between 20% and 30% in value, depending on the type of fuel and the market value at the time of purchase. Sales and departure from the dealership.

By communities, the loans registered in Andalusia represent 17.57% of the total, followed by loans from Madrid and Catalonia with 16.18% and 15.66% respectively. Among manufacturers, Kia and Hyundai are the brands that monopolize the credit portfolio by adding 48.7%.

After the bankruptcy of Lehman Brothers and the outbreak of the 2008 financial crisis, the famous securitizations have already accumulated over the years in which they try to regain their pulse without success. A situation that brings together major banks in Europe, the Association for Financial Markets of Europe (AFME), is expected to escalate due to the impact of the pandemic but the crisis triggered by the Russian war in Ukraine has escalated again in freezer. put into