Koromo UK 1 PLC : 30 September 2024

This will be the first public UK issuance from TFSUK.

The Issuer will make payments on the Notes from a portfolio comprising receivables originated by TFSUK which will be purchased by the Issuer on the Closing Date. The pool of Underlying Agreements comprises hire purchase agreements and personal contract purchase agreements. These hire purchase agreements and personal contract purchase agreements provide for equal monthly payments over the term of the contract or monthly payments and a final bullet payment or, in respect of the personal contract purchase agreements, an additional larger optional "balloon" payment at the end of the term.

As at the cut-off date (31 August 2024) the pool consisted of 38,470 fixed-rate loans where the average current discounted balance is £17,101 and the largest is £67,864. No loans were in arrears, and all payments are via direct debit. Customer Type: private – 98.55%, commercial – 1.45%. Vehicle type: New – 63.17%, Used – 36.83%. Contract Type: PCP – 94.81%, HP – 5.19%. Obligor concentration: top 1 – 0.014%, top 20 – 0.17%. The WA seasoning is 11.20 mnths. Regional distribution: South East – 16.64%, East of England – 12.60% and North West – 12.28%.

UK & EU Risk Retention: On the Closing Date and while any of the Notes remain outstanding, TFSUK will, as an originator for the purposes of the UK Securitisation Regulation, retain a material net economic interest of not less than 5% in the securitisation as required by Article 6(1) of the UK Securitisation Regulation. In addition, although the EU Securitisation Regulation is not applicable to it, TFSUK, as originator, will retain (on a contractual basis) a material net economic interest of not less than 5% in the securitisation in accordance with Article 6(1) of the EU Securitisation Regulation.

US Risk Retention: The Seller does not intend to retain 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 US Securities Exchange Act, but rather intends to rely on an exemption provided for in Section 20 of the US Risk Retention Rules regarding non-US transactions.

STS: As at the Closing Date, pursuant to Article 27(1) of the UK Securitisation Regulation, the Seller intends to notify the FCA that the transaction will meet the requirements of Articles 20 to 22 of the UK Securitisation Regulation (the "UK STS Notification").

Compare / contrast: Koromo Italy Srl, Bavarian Sky UK 6 plc, Satus 2024-1