Cardiff Auto Receivables Securitisation 2018-1: 08 December 2018

The Issuer will make payments on the Notes from the payments of principal and interest it receives from borrowers pursuant to automotive and personal contract plan agreements originated by Black Horse Limited. These hire purchase agreements and personal contract plan agreements provide for either monthly payments over the term of the contract, or monthly payments and, in respect of the personal contract plan agreements, an additional larger optional "balloon" payment at the end of the term or, in respect of the lease purchase agreements, a mandatory larger balloon final payment.

Black Horse is an indirect subsidiary of Lloyds Bank plc. The company regarded as the ultimate parent and controlling party of Black Horse is Lloyds Banking Group plc. Black Horse is one of the largest independent point of sale finance providers in the United Kingdom for the car, motorcycle and caravan market. Black Horse originates business through a network of franchised and independent dealers, which gives it a broad geographic spread of business throughout England and Wales, Scotland and Northern Ireland.

The provision pool consists of 196,667 receivables agreements, where the average current outstanding Principal Balance is £15,408 and the maximum is for £79,976. Overall the portfolio is highly granular with the top 20 obligors accounting for just 0.053% of outstanding balances. Contract Type (by outstanding balance): PCP – 73.8%, HP – 25.9% and LP - 0.3%. The WA seasoning is 8.01 months. Regional concentration: South East – 19%, Scotland – 15%, West Midlands – 12%, the North West – 11% and Greater London – 10.0%.

EU Risk Retention: The Seller, as "originator" for the purposes of Article 405(1) of the CRR, 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 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012, Article 17 of Directive (EU) No 2011/61 ("AIFMD") specified by Article 51 of Regulation (EU) No 231/2013, and Article 254 of Regulation (EU) 2015/35 of 10 October 2014. As of the Closing Date, such interest will be comprised of an investment in the Class S Notes, which is no less than 5% of the nominal amount of the securitised exposures.

US Risk Retention: The issuance of the Notes has not been designed to comply with the U.S. Risk Retention Rules other than the exemption under Section _.20 of the U.S. Risk Retention Rules. No steps have been taken by the Issuer, the Seller, the Arranger, the Lead Manager or any of their respective affiliates or any other party to accomplish such compliance.

Compare/contrast: Azure Finance No.1 plc, Silver Arrow S.A. Compartment UK 2018-1, Turbo Finance 8 plc