Domi 2020-1 B.V.: 15 March 2020
The second standalone issue from originator Domivest where the Issuer will make payments on the notes from, among other things, payments of principal and interest received from a portfolio comprising of Mortgage Loans originated by the Seller and secured over non-owner occupied residential and mixed-use real estate properties located in the Netherlands.
Since its incorporation, the Seller has grown to be one of the dominant players in the Dutch buy-to-let mortgage market and is currently one of two specialised buy-to-let mortgage lenders that offer a standardised product to professional landlords in the Netherlands. The Seller is a fully owned subsidiary of Domivest Holdings B.V., which also has Domivest Finance B.V., Domivest Invest B.V. and Domivest Retention Finance B.V. as fully owned subsidiaries. The largest shareholder in Domivest Holdings B.V. is Cervus BtL Coöperatief U.A. with an 80.5% shareholding. Bunhill Investments Unlimited, an affiliate of the Macquarie Group Limited, holds 19.5% of the shares and a warrant to increase overall holdings to 35%.
As at the provisional portfolio cut-off date (21 January 2020) the pool consisted of 1,288 first-lien loans (in 2,396 loan parts) advanced to 1,219 borrowers. The average current loan balance is Eur263,624. Borrower Type (by current balances): natural person – 89.62%, corporate entity – 10.38%. Interest Rate Type: interest only – 86.15%, linear – 13.85%. The CLTV is 68.90% (the WA OLTV was 69.60%) and the WA seasoning is 5.25 months. Regional distribution: Noord-Holland – 34.06%, Zuid-Holland – 30.45%, Noord-Brabant – 12.97% and Utrecht – 7.16%.
EU Risk Retention: The Seller as retention holder, in its capacity as the "originator" within the meaning of Article 2(3) of the STS Regulation, has undertaken that it will at all times retain a material net economic interest in the securitisation transaction, which shall in any event not be less than 5%, in accordance with Article 6 of the STS Regulation. As at the Closing Date, such material net economic interest will be held in accordance with paragraph 3 item (c) of Article 6 of the STS Regulation by holding randomly selected exposures, equivalent to not less than 5% of the nominal value of the securitised exposures, where such non-securitised exposures would otherwise have been securitised in the securitisation.
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 final rules promulgated under Section 15G of the Securities Exchange Act of 1934, 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 that meet certain requirements.
STS: Neither the Issuer, the Seller, the Joint Lead Managers nor the Arrangers have any intention to notify ESMA or otherwise seek designation of the securitisation in connection with which the Notes are issued as 'STS' or 'simple, transparent and standardised' as set out in Chapter 4 of the STS Regulation.
Compare/contrast: Domo 2019-1, Dutch Property Finance 2020-1 B.V, Storm 2020-I B.V.