Phoenix Funding 7 DAC: 26 February 2021
After a gap of over four years, another securitisation of prime residential home loans from KBC Bank Ireland plc (formerly known as IIB Bank plc) which was founded in 1973 and is a wholly owned subsidiary of KBC Bank NV Belgium which, in turn, is part of the KBC Group NV.
The Issuer will make payments on the Notes from payments of principal and interest on a portfolio comprising mortgage loans originated by KBC Bank Ireland plc or, in respect of mortgage loans originated before 26 June 2009, KBC Mortgage Finance and secured over residential properties located in Ireland and sold by KBCI as the Seller to the Issuer on the Issue Date. Both KBCI and the Issuer confirm that the assets backing the issue of the Notes are not part of a re-securitisation.
At the cut-off date (1 February 2021) the mortgage pool consists of 32,721 mortgages, with an average balance of Eur248,660. The largest loan is for Eur1.902mln and overall there are 460 agreements in the pool with outstanding balances of greater than Eur500,000, representing 4.82% of total outstandings. Occupancy type: owner-occupied 95.75%, BTL 4.18%, second home 0.07%. Interest Rate Type: floating 49.56%, fixed to floating 50.44%. Loan Purpose: purchase 76.06%%, re-mortgage 23.94%. The WA current LTV is 58.85% and WA seasoning is 97.57mnths. Regional concentration (by principal balances): Dublin 52%, Mid-West 17% and the South-West 9%.
Significant investor: On the Issue Date, KBCI will purchase 100% of the Notes to be issued by the Issuer.
EU Risk Retention: KBCI has undertaken to retain a material net economic interest of not less than 5% in the securitisation transaction in accordance with Article 6(1) of Regulation (EU) No 2017/2402. The Retention Requirement will be satisfied as at the Issue Date by the Retention Holder granting a Class Z loan of €940mln to the Issuer pursuant to a Class Z Loan Agreement dated at the Issue Date between, inter alios, the Issuer and KBCI.
US Risk Retention: The Retention Holder 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.
Compare/contrast: Phoenix 6, Dilosk RMBS No. 4, Shamrock Residential 2021-1