SCF Rahoituspalvelut (KIMI VIII): 19 October 2019

Another transaction which securitises a portfolio of hire purchase agreements from Santander Consumer Finance’s Finnish operation. Again the seller is Santander Consumer Finance Oy, which is the Finnish business unit within the SCB AS Nordic Group. The principal asset from which the Purchaser will make payments of interest and principal in respect of the loan is a portfolio of hire purchase agreements.

The eligibility criteria for the HP contracts (include): has not been terminated and has an original term of no more than 60 months; is denominated and payable in Euro; bears interest calculated at a fixed rate and payable monthly; is fully amortising by payment of constant monthly instalments; is not, as of the purchase cut-off date, a delinquent HP contract, a defaulted HP contract or disputed HP contract; the contract is subject to and governed by Finnish law; at least one due instalment has been fully paid under the HP contract.

The portfolio consists (as of 14 September 2019) of 46,759 fixed interest contracts (used – 36,258, new – 10,501) with an average outstanding balance of Eur17,089, where the largest contract is for Eur398,025. Overall there are 537 contracts in the pool of greater than Eur60,000, which represents 5.30% of outstanding balances. Borrower type (by outstanding balances): consumer 90.6%, commercial 9.4%. Contract type (by outstanding balances): balloon 57.0%, standard 43.0%. The WA seasoning is 7.7 months. Regional concentration (by outstanding balances): Greater Helsinki 23.8%, South Western Finland 11.9%, Uusimaa 11.0% and Western Tavastia 9.9%.

EU Risk Retention: The Seller, as originator for the purposes of Regulation (EU) no. 2017/2402 of 12 December 2017, will undertake to retain on an ongoing basis a material net economic interest equivalent to not less than 5% in the securitisation, comprised of certain randomly selected exposures held on the balance sheet of the Seller which would otherwise have been securitised in the securitisation in accordance with Article 6(3)(c) of the EU Securitisation Regulation and the applicable Regulatory Technical Standards.

US Risk Retention: The Seller, as the sponsor under the U.S. Risk Retention Rules, does not intend to retain at least 5% of the credit risk of the securitised assets for purposes of compliance with the U.S. Risk Retention Rules, but rather intends to intends to rely on an exemption provided for in Section 20 of the U.S. Risk Retention Rules regarding non-U.S. transactions that meet certain requirements.

Compare/contrast: SCF Rahoituspalvelut II (KIMI VII), BBVA Consumo 10 FTA, Sapphireone Auto FCT 2019-1