Income Contingent Student Loans 2 (2007-2009): 05 December 2018

The second in the series of transactions, where the principal assets from which the issuer will make payments on the notes is a portfolio of income-contingent repayment student loans (ICR) provided by Her Majesty's Government of Great Britain and Northern Ireland acting through the Secretary of State for Education.

Key Characteristics of the Provisional Portfolio: Number of Borrowers – 369,392 Number of Transferred Loans – 1,310,316, Average Transferred Loan's balance per Borrower - £10,504, Largest Transferred Loan - £59,541, WA seasoning 94.9 months. Approximately 4.0% of the Transferred Loans comprising the Provisional Portfolio are Transferred Loans currently with Overseas Borrowers.

EU Risk Retention: The Seller, as originator, will undertake 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 of the Capital Requirements Regulation (EU) No 575/2013, Article 51 of Section 5 of Chapter III of the Commission Delegated Regulation (EU) No 231/2013 and Article 254 of Commission Delegated Regulation (EU) 2015/35. On the Note Issuance Date, such interest will be comprised of an interest in randomly selected exposures equivalent to no less than 5% of the nominal amount of the securitised exposures.

US Risk Retention: Although an exemption could be available the Seller will comply with the U.S. Risk Retention Rules pursuant to which the Seller, as sponsor, will acquire and retain an economic interest in the credit risk of the interests created by the Issuer on the Note Issuance Date in an amount of, in the case of vertical risk retention, not less than 5% of the aggregate Note Principal Amount of each Class of Notes and other ABS interests issued by the Issuer (other than the EVI). The single vertical security will be in the form of the Retention Note.

Compare/contrast: Income Contingent Student Loans 1 (2002-2006)