Bavarian Sky S.A German Auto Loans (Compartment 10: 30 May 2020
As per the previous Bavarian Sky German Auto transactions (all prospectuses and investor reports available on EuroABS), the issue is backed by a portfolio of loan receivables secured on certain passenger cars, light commercial vehicles or motorcycles. BMW Bank is the seller of the receivables and it is one of Germany’s leading automotive banks.
Eligibility criteria (includes): is denominated and payable in Euros; has a fixed interest rate and is fully amortising; at least one due loan instalments has been fully paid; is subject to the laws of Germany; the debtor is neither an employee of BMW nor an officer of BMW; the relevant Loan Agreement has been entered into with a Debtor which (i) if a corporate entity, has its registered office in Germany or (ii) if an individual, has its place of residence in Germany.
At the cut-off date (30 April 2020) the portfolio consisted of 37,722 loans, of which 36,385 are balloon loans. The average outstanding balance is Eur20,061 and the average balloon amount is Eur11,189. Client type: private 73.41% and commercial 26.59%. Credit type: Balloon 98.84%, Equal Instalment Loan 1.16%. Debtor concentration: top 1 - 0.07%, top 5 - 0.33%, top 20 - 0.87%. Vehicle type: used 55.72% and new 44.28%. WA seasoning is 5.81 months.
EU Risk Retention: In compliance with Article 6 Paragraph (3)(d) of the Securitisation Regulation, the Seller has undertaken to retain on an ongoing basis until the earlier of the redemption of the Class A Notes in full and the Legal Final Maturity Date at least 5% of the nominal amount of the "securitised exposures" by (i) retaining until the earlier of the redemption of the Class A Notes in full and the Legal Final Maturity Date the Class B Notes and (ii) until the earlier of the redemption of the Notes in full and the Legal Final Maturity Date, in its capacity as Subordinated Lender, providing the Subordinated Loan, provided in each case of (i) and (ii) that the Seller will not be in breach of such undertaking if the Seller fails to so comply due to events, actions or circumstances beyond the Seller's control.
US Risk Retention: The Seller does not intend to retain at least 5% of the credit risk of the Notes 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.
STS: This transaction is intended to comply with the criteria of the Securitisation Regulation as set out in Articles 19 to 22 of the Securitisation Regulation and to be recognised as a simple, transparent and standardised securitisation.
Compare/contrast: Bavarian Sky S.A. German Auto Loans (Compartment 9), Volkswagen Car Lease No.30 Ltd