Cardiff Auto Receivables Securitisation 2019-1: 06 December 2019

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 personal contract plan agreements provide for monthly payments over the term of the contract, and an additional larger optional "balloon" payment at the end of the term.

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 21,328 receivables agreements, where the average current outstanding Principal Balance is £28,604 and the maximum is for £78,959. Overall the portfolio is highly granular with the top 20 obligors accounting for just 0.255% of outstanding balances. Contract Type (by outstanding balance): PCP – 100%. The WA seasoning is 9.18 months. Regional concentration: South East – 22.4%, West Midlands – 15.8%, the North West – 12.2% and Greater London – 11.1%.

EU Risk Retention: The Seller, as "originator" for the purposes of the Securitisation Regulation, 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 6(1) of the Securitisation Regulation. As of the Closing Date such interest will, in accordance with Article 6(3)(d) of the Securitisation Regulation, 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.

STS: The Seller, as originator, may procure a notification to be submitted to ESMA, in accordance with Article 27 of the Securitisation Regulation, and the FCA, that the requirements of Articles 19 to 22 of the Securitisation Regulation have been satisfied with respect to the Notes.

Compare/contrast: Cardiff Auto Receivables Securitisation 2018-1, Auto ABS UK Loans 2019 plc, Dowson 2019-1 plc