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SCF Rahoituspalvelut (KIMI VII): 01 December 2018

Another transaction which securitises a portfolio of hire purchase agreements from Santander Consumer Finance’s Finnish operation. Again the seller is Santander Consumer Finance Oy, which is the Finnish business unit within the SCB AS Nordic Group.

The eligibility criteria for the HP contracts (include): has not been terminated and has an original term of no more than 60 months; is denominated and payable in Euro; bears interest calculated at a fixed rate and payable monthly; is fully amortising by payment of constant monthly instalments; is not, as of the purchase cut-off date, a delinquent HP contract, a defaulted HP contract or disputed HP contract; the contract is subject to and governed by Finnish law; at least one due instalment has been fully paid under the HP contract.

The portfolio consists (as of 14 October 2018) of 44,090 fixed interest contracts (used – 33,344, new – 10,746) with an average outstanding balance of Eur15,089, where the largest contract is for Eur302,427. Overall there are 516 contracts in the pool of greater than Eur60,000, which represents 6.20% of outstanding balances. Borrower type (by outstanding balances): consumer 90.4%, commercial 9.6%. Contract type (by outstanding balances): balloon 52.5%, standard 47.5%. The WA seasoning is 6.9 months. Regional concentration (by outstanding balances): Greater Helsinki 23.2%, Uusimaa 12.4%, South Western Finland 11.4% and Central Finland 10.2%.

EU Risk Retention: The seller will retain, for the life of the notes, a material net economic interest equivalent to not less than 5% of the securitised exposures in accordance with Article 405 of the CRR and Article 51 of the AIFM Regulation. As of the Note Issuance Date such interest will, in accordance with the CRR, the AIFM Regulation and the Solvency II Regulation, be comprised of certain randomly selected exposures held on the balance sheet of the Seller which would otherwise have been securitised in the Securitisation.

US 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 U.S. Risk Retention Rules, but rather intends to intends to rely on an exemption provided for in Section 20 of the U.S. Risk Retention Rules regarding non-U.S. transactions that meet certain requirements.

Compare/contrast: SCF Rahoituspalvelut II (KIMI VI), SC Germany Auto 2018-1