Autowheel Securitisation: 22 July 2018
A rare Greek securitisation, where the transaction is backed by an initial portfolio of Lease Receivables and Future Claims purchased by the Issuer from Autohellas S.A. (the Seller). Additional portfolios may be purchased by the Issuer during the Revolving Period (18 months) in accordance with the terms described in the prospectus. This will be Greece’s first non-bank leasing securitisation.
Autohellas was founded in Greece in 1962 as a subsidiary of Hertz International (under the name Hertz Hellas). Hertz operates in larger European countries through its subsidiaries whereas, in smaller markets like Greece, it operates through a franchising system. Autohellas is the biggest franchisee of Hertz globally. Autohellas first introduced operating leases to the Greek market in 1989.
Almost all Lease Agreements originate directly from Autohellas’ sales representatives. The exceptions may be large corporate clients who select their vendors based on a procedure of receiving offers from many vendors and selecting the provider. Autohellas does not conclude distance contracts or off-premises contracts within the meaning of Directive 2011/83.
Eligibility criteria (includes): all leases are Euro denominated; the vehicle title is held by the seller; monthly lease payments; at least one payment has been made; no lease was in arrears at closing date.
The initial portfolio consists of 8,974 leases. Regional concentration (by discounted balance RV): Athens – 86.74%, Thesaloniki – 7.07%.
EU Risk Retention: The Seller, in its capacity as originator, undertakes that it will retain a material net economic interest of at least 5% of the nominal value of the securitised exposures in accordance with Article 405(1)(d) of Regulation (EU) No. 575/2013, Article 51(1)(d) of Commission Delegated Regulation (EU) No 231/2013, and 254(2)(d) of the Commission Delegated Regulation (EU) 2015/35.
US Risk Retention: The Seller 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.
Compare/contrast: AutoKinito plc (Redeemed), Praxis II Finance plc