Dilosk RMBS No. 4: 11 February 2021
Another stand-alone transaction under the Dilosk name. On this occasion the issuer will make payments on the Notes from payments of principal and revenue on a portfolio comprising mortgage loans which were originated by Dilosk DAC and are secured over residential properties located in Ireland.
The primary business of Dilosk is the origination and funding of residential mortgage loans in Ireland with a particular focus on Buy-To-Let mortgages.
At the cut-off date (30 November 2020) the portfolio consisted of 1,258 residential mortgage loans, where the average current balance is Eur206,700 and the largest is for Eur1.500mln. Occupancy Type (by current balances): BTL – 50.2%, owner-occupied – 49.8%. Repayment type (by current balances): repayment - 66.6%, interest only - 19.2% and flexi mortgage - 14.2%. Interest rate type: variable - 53.2%, fixed – 46.8%. Mortgage Loan Purpose: purchase - 57.9%, re-mortgage - 42.1%. Borrower type: individual - 76.8%, commercial - 16.4%, pension trust - 6.8%. The WA current LTV (non-indexed) is 63.60%, the original LTV was 64.20% and the WA seasoning is 6.8 months. Regional concentration: Dublin - 56.6%, Mid-West – 17.1% and South West - 10.9%.
Significant Investor: The Seller will, on the Closing Date, subscribe for 100% of the Class Z1 Notes, the Class Z2 Notes and the Class R Notes.
EU & UK Risk Retention: On the Closing Date and until all the Notes have been redeemed in full, Dilosk as originator will retain a material net economic interest of not less than 5%. in the securitisation as required by (i) Article 6 of Regulation (EU) 2017/2402 (the "EU Securitisation Regulation") and (ii) Article 6 of Regulation (EU) 2017/2402 of the European Parliament and of the Council of 12 December 2017 laying down a general framework for securitisation and creating a specific framework for simple, transparent and standardised securitisation as it forms part of domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018 (the "UK Securitisation Regulation"). As at the Closing Date, the EU Retention and the UK Retention will each be satisfied by the Retention Holder subscribing for and thereafter holding an interest in not less than 5% of the nominal value of each Class of Notes (other than the Class X Notes and the Class R Notes).
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, as amended, 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.
Compare/contrast: Dilosk No.3, Finance Ireland RMBS No.2, Shamrock Residential 2021-1