Swiss Credit Card Issuance (2019-1) AG: 19 June 2019
The seventh issuance from the Swisscard programme, it will be collateralised by a pool of Swiss consumer credit card receivables. Whereas the earlier transactions were originated by Credit Suisse AG using the American Express, MasterCard and Visa networks, Credit Suisse ceased to be an originator as of 15 June 2016.
All business was transferred from Credit Suisse to Swisscard effective as of the Business Transfer Effective Date under an asset deal pursuant to an asset transfer agreement. Accordingly, Swisscard is the legal counterparty of the Credit Card Agreements entered into with Cardholders. Therefore, the ultimate source of payment on the notes will be collections on designated credit card accounts originated and/or acquired in Switzerland by Swisscard AECS GmbH.
As at 31 March 2019 the pool consisted of 1,091,309,505 receivables, with outstanding receivables of CHF1,132.266mln.
EU Risk Retention: Notwithstanding the fact that neither Swisscard nor the Issuer intends to comply with the Securitisation Regulation, including in particular the requirements of Article 7, Swisscard (in its capacity as Selling Originator as of the date of the Prospectus) undertakes to retain, 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 Securitised Portfolio, which is consistent with the requirements under Article 6 of the Securitisation Regulation, as at the Closing Date, and such interest shall be as at such date in the form of the Minimum Originator Invested Amount.
US Risk Retention: Swisscard, in its capacity as Selling Originator, as the sponsor under the U.S. Risk Retention Rules, does not intend to retain at least 5% of the credit risk of the Issuer for the purposes of the U.S. Risk Retention Rules, but rather intends to rely on an exemption provided for in Section 20 of the U.S. Risk Retention Rules regarding non-U.S. transactions.
Compare/contrast: Swiss Credit Card Issuance (2018-1), Purple Master Credit Cards