Guincho Finance: 17 November 2018

Another in the series of European NPL issues. On this occasion the originator is Banco Santander Totta S.A. and the underlaying assets are Portuguese assets.

The transaction is basically a static cash securitisation of a Portuguese NPL portfolio which are worth around Eur482mln by gross book value. The portfolio consists of 7,466 loans, which have been advanced to 2,455 borrowers. The average GBV per loan is Eur73,480 and the average GBV per borrower is Eur195,827.

Overall the pool is mixed, and is comprised of: senior secured (37%), junior secured (12%) and unsecured (51%) loans. The obligors are also varied, with the loans having been extended to companies (82%), individuals (14%) and self-employed individuals (4%). In regard to the secured loans, these are backed by residential and non-residential properties. The WA seasoning is 3.6 years.

Of note is that around half of the secured loans have an estimated LTV of above 150%, and around 28% of the portfolio is concentrated to the top 10 borrowers.

Compare/contrast: Evora Finance, Sagrantino Italy S.R.L.