UniCredit Leasing placed €715m of AA+/A2 rated bonds backed by performing lease contracts extended to Italian small and medium-sized enterprises through a special purpose vehicle named Locat SV Srl, with three separate European credit agencies involved either as guarantors or direct investors.
The €90m 2.7 year ‘Class A1’ tranche was purchased by KfW and guaranteed by the European Investment Fund, the €400m 3.6 year ‘Class A2’ tranche was purchased by the European Investment Bank, and the €225m 3.6 year ‘Class A3’ tranche was purchased by Société Générale Capital Market Finance and UniCredit.
UniCredit Leasing retained a €585m unrated junior tranche in the deal, its inaugural securitization of purely self-originated loans.
UniCredit, whose investment bank was sole arranger on the transaction, said the proceeds would be used by the leasing business to extend “additional financing” to Italian SMEs with “favourable conditions”.
It added the trade was a great opportunity to diversify its funding sources and investor base and on attractive terms, which were not disclosed.