EFL Lease 2017-1: 08 November 2017
The transaction is backed by a portfolio of lease receivables purchased by the Issuer from Europejski Fundusz Leasingowy S.A. The Issuer will not acquire any receivables or collateral from the Seller other than the Purchased Receivables together with any Related Collateral.
EFL was established in 1991 as one of the first leasing companies in Poland. Its business activities include offering lease products, the subject of which are mainly motor vehicles used in business operations, computer hardware, office equipment and production machines for agriculture and industry. In 2001, EFL became a member of Crédit Agricole Group. Since 2012 business line supervision is being performed by Crédit Agricole Leasing & Factoring. As of the date of this transaction, Crédit Agricole S.A. holds 100% of the shares in EFL.
At the cut-off date (30 September 2017) the portfolio consists of 44,766 leases advanced to 26,642 obligors. The average remaining principal balance is PLN49,594 and the largest is PLN4.699mln. Asset category (by no. leases/% of current balances): M&E - 22,358/39.74%; Light vehicles - 16,373/38.28% and trucks/trailers - 6,034/21.97%. Asset condition (by no. leases/% of current balances): New – 30,128/60.37%; Used – 14,637/39.63%. Obligor concentration: top 1 – 0.38%, top 5 – 1.25%, top 20 – 2.67%. Interest rate type: floating – 96.34%, fixed - 3.66%. The WA seasoning is 10.97 months.
CRR 405: The Seller, in its capacity as originator, undertakes that it will retain, on an ongoing basis, a material net economic interest in the transaction which shall in any event not be less than 5% of the nominal value of the securitised exposures in accordance with Article 405 of Regulation (EU) No 575/2013, Article 51 of Regulation (EU) No 231/2013 and Article 254 of Regulation (EU) 2015/35. As at the Closing Date, such interest will be comprised of randomly selected exposures equivalent to no less than 5% of the nominal amount of the securitised exposures.
US Risk Retention: The issuance of the Notes was not designed to comply with the U.S. Risk Retention Rules other than the exemption under Section 20 of the U.S. Risk Retention Rules, and no other steps have been taken by the Issuer, the Seller, the Arrangers or the Joint Lead Managers or any of their affiliates or any other party to accomplish such compliance.
Compare/contrast: SC Poland Consumer 2015-1, SC Poland Auto 2014-1 Ltd (Redeemed)