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SCF Rahoituspalvelut (KIMI XIII): 03 June 2024

Another transaction which securitises a portfolio of hire purchase agreements from Santander Consumer Finance’s Finnish operation. Again the seller is Santander Consumer Finance Oy, which is the Finnish business unit within the SCB AS Nordic Group. The principal asset from which the Purchaser will make payments of interest and principal in respect of the loans is a portfolio of hire purchase agreements.

The eligibility criteria for the HP contracts (include): has not been terminated and has an original term of no more than 60 months; is denominated and payable in Euro; bears interest calculated at a fixed rate and payable monthly; is fully amortising by payment of constant monthly instalments; is not, as of the purchase cut-off date, a delinquent HP contract, a defaulted HP contract or disputed HP contract; the contract is subject to and governed by Finnish law; at least one due instalment has been fully paid under the HP contract.

The portfolio consists (as of 1 April 2023) of 19,313 fixed interest contracts (used – 15,197, new – 4,116) with an average outstanding balance of Eur21,746, where the largest contract is for Eur249,090. Overall there are 574 contracts in the pool of greater than Eur60,000, which represents 10.7% of outstanding balances. Borrower type (by outstanding balances): consumer - 88.9%, commercial - 11.1%. Repayment type (by outstanding balances): annuity - 100.0%. The WA seasoning is 6.0 months. Regional concentration (by outstanding balances): Greater Helsinki - 27.2%, South Western Finland - 13.1%, Uusimaa - 10.7% and Western Tavastia - 10.2%.

EU Risk Retention: The Seller, as originator for the purposes of Regulation (EU) no. 2017/2402 of 12 December 2017, will undertake to retain on an ongoing basis a material net economic interest equivalent to not less than 5% in the securitisation, comprised of certain randomly selected exposures held on the balance sheet of the Seller which would otherwise have been securitised in the securitisation in accordance with Article 6(3)(c) of the EU Securitisation Regulation and the applicable Regulatory Technical Standards.

US Risk Retention: The Seller, as the sponsor under the US Risk Retention Rules, does not intend to retain at least 5% of the credit risk of the securitised assets for purposes of compliance with the US Risk Retention Rules, but rather intends to rely on an exemption provided for in Section 20 of the US Risk Retention Rules regarding non-US transactions that meet certain requirements.

STS: The securitisation is intended to qualify as a simple, transparent and standardised securitisation (STS) within the meaning of Article 18 of the EU Securitisation Regulation. The securitisation is not intended to be designated as a UK STS securitisation for the purposes of the UK Securitisation Regulation.

Compare/contrast: SCF Rahoituspalvelut (Kimi XII), LT Autorahoitus IV DAC