Silver Arrow S.A. Compartment 9: 02 August 2018

The annual pilgrimage to the market by a Silver Arrow transaction, where again the auto loan receivables secured by certain passenger cars and/or commercial vehicles and certain other collateral have all been originated by Mercedes-Benz Bank AG.

Eligibility criteria for inclusion in the pool (include): the loan receivable has been originated by the seller; each receivable has been originated in Germany for the sale of a financed vehicle in the ordinary course of the seller's business and none of the obligors is an affiliate of Mercedes-Benz Bank AG; the Obligor is not insolvent; the title to each vehicle is held by the seller; each loan receivable has an original term of no longer than 72 months; each loan receivable has a seasoning above or equal to one month; each obligor is a resident of Germany; no loan receivable is delinquent or defaulted; the monthly instalments are paid by direct debit; the brand of the respective financed vehicle is either a Mercedes or a Smart.

At the cut-off date (31 May 2018) the portfolio of 39,330 loans has been advanced to 37,815 obligors. Client type (by outstanding loan principal): private 53.22% and commercial 46.78%. Contract type (by outstanding loan principal): Used Private Balloon 27.09%, New Commercial Balloon 20.20%, New Private Balloon 16.83%, New Commercial Amortising 13.04%, Used Commercial Balloon 8.29%, others 14.56%. Vehicle type (by outstanding loan principal): new 53.12%, used 46.88%. The average outstanding principal is Eur20,519 and the largest is Eur155,999. The pool is highly granular, with the largest obligor accounting for just 0.04%, the top 5 for 0.16% and the top 20 obligors for 0.53%. Seasoning is a healthy 14.96 months.


EU Risk Retention: The Seller will retain, for the life of the transaction, a material net economic interest of not less than 5% in the transaction in accordance with Article 405, Article 17 and Article 254. As of the Issue Date, such interest will, in accordance with Article 405 paragraph 1 sub-paragraph (d) of the CRR, be comprised of an investment in the Class B Compartment 9 Notes and the granting of the Subordinated Loan, which is together equivalent to no less than 5% of the nominal amount of the securitised exposures.

US Risk Retention: The issuance of the Compartment 9 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 to accomplish such compliance.

Compare/contrast: Silver Arrow Comp 8