Ardmore Securities No.1: 27 April 2018
A stand-alone issue, where the Issuer will make payments on the Notes from payments of principal and revenue on a portfolio comprising mortgage loans originated by Ulster Bank Ireland and secured over residential properties located in Ireland which will be purchased by the Issuer on the Closing Date.
Ulster Bank Ireland is a wholly-owned subsidiary of Ulster Bank Holdings (ROI) Limited, which in turn is a wholly-owned subsidiary of The Royal Bank of Scotland Group plc. The Seller Bank Group had total assets of €30 billion and owners' equity of €6 billion as at 31 December 2017. The Group's capital ratios on the ECB transitional basis as at 31 December 2017 were a total capital ratio of 33.8%, a CET1 capital ratio of 31.2% and a Tier 1 capital ratio of 31.2%.
As at the cut-off date (28 February 2018) the provisional pool consisted of 8,602 sub-accounts, where the average mortgage loan balance is Eur156,548 and the largest is for Eur1.142mln. All of the loans are on repayment terms, all have been advanced to owner-occupiers, and all have been subject to a full valuation method. Loan Purpose (by current balances): Purchase – 89.92%, Re-mortgage – 8.16%, others – 1.92%. Interest Rate Type: Fixed to SVR – 53.15%, SVR – 46.85%. The WA CITV is 57.44% (original LTV was 75.33%) and the WA seasoning is 30.25 months. Regional concentration: Dublin – 46.01%, Mid-East – 14.12% and South-West – 11.65%.
CRR 405: The Seller, as an originator for the purposes of the CRR, the Regulation (EU) No 231/2013 and the Solvency II Regulation undertakes to retain, on an ongoing basis, a material net economic interest of not less than 5% in the nominal value of the securitisation in accordance with Article 405 of the CRR, Article 51 of the AIFM Regulation, and Article 254 of the commission Delegated Regulation (EU) 2015/35. As at the Closing Date, the Retained Exposures will comprise the Class Z Notes, the Class X Notes and a portion of the Class C Notes as required.
U.S. Risk Retention: The Seller, as the sponsor under the U.S. Risk Retention Rules, does not intend to retain at least 5% of the credit risk of the securitised assets for purposes of compliance with the final rules promulgated under Section 15G of the Securities Exchange Act of 1934, but rather intends to rely on an exemption provided for in Section 20 of the U.S. Risk Retention Rules regarding non-U.S. transactions.
Volcker Rule: The Issuer is of the view that it is not now, and immediately following the issuance of the notes and the application of the proceeds thereof it will not be, a "covered fund" as defined in the regulations.
Compare/contrast: CRIMSON No 16 (Redeemed), European Residential Loan Securitization 2018-1, Fastnet Securities 13