Belgian Lion SME III: 14 December 2018

The originator of the SMEs is , a part of ING Groep NV, and the sale of the SME receivables will be a true sale to the effect that, upon an insolvency or bankruptcy of the Seller, the SME Receivables will not form part of the insolvent estate or be subject to claims by the Seller’s liquidator or creditors.

There is no guarantee that the characteristics of any SME Loan related to SME receivables assigned to the issuer after the closing date will have the same characteristics as the SME loans as of the first purchase. In particular, such new SME Loans may have different payment characteristics from the SME loans assigned to the issuer as of the first purchase.

The initial portfolio (as at 12 November 2018) consists of 38,968 Belgian reference obligations (33,886 reference entity groups) with over Eur9.29bln outstanding. Customer segment (by reference entities / notional amount): mid-corps 9,736/61.49%, retail 29,193/36.85%, corporate 39/1.66%. Product type (by reference entities / notional amount): Investment Loan 13,772/60.99%, Business Loan 64,874/36.84%, Roll-Over Term Loan 123/2.17%. Industry concentration (by notional amount): various real estate activities 10.19%, management consulting services 7.14%, rental and operating of own or lease 4.28%, retail sale of other goods in specialist 3.05%. Principal Payment Type (by notional amount): Annuity 58.44%, Linear 35.38%, Bullet 3.38% and Tailor Made 2.80%. Regional concentration (by notional amount: West-Vlaanderen 17.47%, Antwerpen 16.32%, Oost-Vlaanderen 16.16% and Bruxelles 10.75%. WA seasoning is 2.96 yrs.

EU Risk Retention: The Seller undertakes to retain a material net economic interest of not less than 5% in the securitisation transaction for as long as the Class A Notes have not been redeemed in full. As at the Closing Date, such interest will, in accordance with Article 405 paragraph (1) sub-paragraph (d) of the CRR, Article 254 paragraph (2) sub-paragraph (d) of the Solvency II Regulation and Article 51 paragraph (1) sub-paragraph (d) of the AIFM Regulation, be comprised of an interest in all the Class B Notes.

Compare/contrast: Belgian Lion SME II, Loan Invest NV (Compartment SME Loan 2017)