Drury Lane Funding 2020-1 plc: 11 November 2020
The issuer will make payments on the Notes from a portfolio comprising receivables (and certain ancillary rights) originated by Sainsbury’s Bank plc.
Sainsbury’s Bank plc was incorporated in 1996 and is regulated by the FCA. SB's principal activities consist of four core business lines: banking products, insurance, travel money and automated teller machines. SB's banking products consist of loans, credit cards, mortgages and savings accounts. New mortgages lending ceased in Sept 2019 and the mortgages book has now entered the run-down phase. At February 2020, SB provided services to over 2.1m customers in the United Kingdom, and total customer lending was £6.5bn
The Originator provides only one loan product to customers, being an unsecured fixed rate personal loan product (each an Unsecured Personal Loan) and these receivables arise under the Unsecured Personal Loans. All loans are made in Sterling.
The portfolio consists of 79,488 performing loans, where the average balance is £9,121 and the largest is £37,402. Repayment Method: Constant Instalment Repayment – 100.00%. Loan Purpose: New Car – 45.76%, Home Improvements – 29.28%, Debt Consolidation – 17.14%. The WA seasoning is 14.93 years. Regional distribution: South East – 19.75%, East of England – 12.50%, North West – 12.05%, London – 11.26% and West Midlands – 10.98%.
EU Risk Retention: The Originator will retain, on an ongoing basis, a material net economic interest of not less than 5% in the securitisation in accordance with the text of Article 6(1) of Regulation (EU) 2017/2402. Such interest will be comprised of an interest in the first loss tranche.
US Risk Retention: The transaction is not intended to involve the retention by a sponsor of 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 US Risk Retention Rules regarding non-US transactions.
STS: The Originator intends that a notification be submitted to ESMA and the UK Financial Conduct Authority (FCA), in accordance with Article 27 of the Securitisation Regulation, confirming that the requirements of Articles 19 to 22 of the Securitisation Regulation are met in order to procure designation as a STS securitisation.
Compare/contrast: Marketplace Originated Consumer Assets 2019-1, Orbita Funding 2020-1 plc