SC Germany Consumer 2023-1: 29 August 2023
The fourteenth transaction in the SC Germany Consumer series, where the Notes are backed by a portfolio of receivables under general purpose consumer loans originated by Santander Consumer Bank AG.
The Notes are backed by a portfolio of receivables under general purpose consumer loans originated by Santander Consumer Bank AG, some of which are secured by certain collateral. The Issuer will, subject to certain requirements, on each Payment Date during a period of twelve months following the Note Issuance Date, purchase and acquire from the Seller further receivables and related collateral offered by the Seller from time to time.
Eligibility criteria for inclusion of the receivable in the pool (include): is subject to German law; is denominated and payable in euro; the loan contract has not been terminated; the loan facility under the contract has been fully drawn by the relevant Debtor; has a fixed interest rate and is fully amortising through payment of constant monthly instalments; is not, as of the purchase date, a delinquent receivable; at least two due loan instalments have been fully paid for the receivable prior to the purchase date.
As at 31 July 2023, the portfolio comprises 42,638 loans with an average current loan balance of Eur18,762 (originally Eur20,230). It is highly granular, with the largest borrower accountable for only 0.0165% of current balances, and the top 25 for only 0.3154%. Collateral: secured - 279 loans (1.32% of current balances); unsecured - 42,359 loans (99.35%). Insurance cover (by current outstanding balances): Yes - 69.38%, No - 30.62%. The WA seasoning is 7.58 mnths. Regional distribution (by current outstanding balances): Nordrhein-Westfalen - 22.34%, Baden-Württemberg - 13.92%, Bayern - 13.44% and Lower Saxony - 10.26%.
EU Risk Retention: While any of the Notes remain outstanding the Seller will, in its capacity as originator, retain for the life of the transaction a material net economic interest of not less than 5% with respect to the transaction in accordance with Article 6(3)(c) of Regulation (EU) 2017/2042 of the European Parliament through an interest in randomly selected exposures.
US Risk Retention: The issuance of the Notes was not designed to comply with the US Risk Retention Rules other than the exemption under Section _.20 of the US Risk Retention Rules, and no other steps have been taken by the Issuer, the Seller, the Arranger, the Joint Lead Managers or any of their affiliates or any other party to accomplish such compliance.
STS: The Seller intends to notify the European Securities Markets Authority that the transaction will meet the requirements of Articles 20 to 22 of the Securitisation Regulation.
Compare/contrast: SC Germany Consumer 2022-1, Fortuna Consumer Loan ABS 2023-1, RevoCar 2023-1