Swiss Auto Lease 2019-1: 01 April 2019
The ultimate source of funds for the payment of interest and repayment of principal on the Notes will be the Issuer’s right to receive the collections and proceeds of the Lease Assets which are owned by Cembra and leased to the Lessee. Note, no principal will be paid on the notes during the Revolving Period. Instead, on each payment date during the Revolving Period, the Issuer will purchase additional Lease Assets from the Seller (provided certain conditions are satisfied).
Cembra Money Bank is one of the leading Swiss providers of financial services - offering a wide range of products including loans, leasing, credit cards and savings products.
At the cut-off date (28 February 2019) the pool consisted of 13,308 leases advanced to 13,142 debtors, where the average lease balance is CHF21,349 and the largest is for CHF176,152. Borrower type (by current balance): private 89.87%, commercial 10.13%. Vehicle condition: used 62.62%, new 37.38%. Vehicle type: car 92.65%, light commercial 3.94% and motorbikes 3.41%.
EU Risk Retention: Notwithstanding the fact that the Seller does not intend to comply with the Securitisation Regulation, including the EU Risk Retention and Due Diligence Requirements, the Seller intends to retain, in its capacity as the originator, on an on-going basis, a material net economic interest in the transaction in an amount equal to at least 5% of the nominal value of the Purchased Lease Assets which is consistent with the requirements under Article 6 of the Securitisation Regulation as at the Initial Purchase Date, and such interest shall at such date be in the form of the Subordinated Certificate.
US Risk Retention: The Seller does not intend to retain at least 5% of the credit risk, but rather intends to rely on an exemption provided for in Section 20 of the US Risk Retention rules regarding non-US transactions.
Compare/contrast: Swiss Auto Lease 2016-1, Bavarian Sky Europe Compartment 2 – Switzerland, Swiss Car ABS 2018-2 AG