Aqua Finance No. 4 Ltd.: 14 July 2017

This will be the first leasing securitisation out of Portugal for over 3 years, and the source of funds for the payment of principal and interest on the Notes will be the right of the issuer to receive payments in respect of receivables arising under consumer and asset finance loan agreements, financial lease agreements and long term rental agreements originated by Montepio Crédito – Instituição Financeira de Crédito, S.A.
Montepio Crédito (ex-Finicrédito, S.A.) has five main core products: Loan (credit) to finance the acquisition of any new or used vehicle and consumer durables, white & brown goods, appliances, furnishings, computers, mobile phones, etc.; Long-term rental (LTR) market contract (vehicle and equipment); Leasing finance (vehicle and equipment); Personal loan; and Renting (vehicle and equipment);

The portfolio consists of : secured consumer loans primarily to individuals and small-sized enterprises for the purchase of automobiles, motorcycles or household appliances; vehicle and equipment finance leases primarily to small and medium-sized enterprises; and long term rental agreements for the long term rental of new (or in a limited number of cases, used) vehicles and equipment to individuals and small and medium-sized enterprises.

Eligibility criteria (includes): it is governed by Portuguese law; it is denominated in Euro; is not more than 30 days in arrears; is in existence, maintained and serviced by Montepio Crédito.

The portfolio consists of 22,159 loans, advanced to 19,294 obligors, where the largest current loan is Eur1.607mln and the average current loan is Eur8,720. Obligor Type: company 60.77%, individual 39.23%. Product Type (by no. of loans / current balance): loan 15,409/38.09%; lease 4,512/32.90%; renting 1,994/27.97%; and LTR 244/1.03%. Asset Type/Purpose (by no. of loans / current balance): Commercial Trucks 1,668/31.77%; New Cars 4,913/31.09%; Used Cars 4,334/27.19%, and Industrial Vehicles 347/3.22%. Guarantee Type: Personal 40.84%, Unsecured 26.24%, Retention of title 22.50%, other 10.42%. Interest Rate Type: floating 58.73%, fixed 41.27%. The WA seasoning is 1.5 years. Obligor Location: Minho e Douro Litoral 34.52%, Estremadura e Ribatejo 27.10%, Beira Litoral 20.30%, and Lisboa 7.59%.

CRR 405: The Originator, will undertake … to retain, on an ongoing basis, a material net economic interest of not less than 5% of the nominal amount of the securitised exposures….. through total or partial retention of the Class C Notes until the Final Legal Maturity Date and, if necessary, other Notes having the same or a more severe risk profile than those sold to investors

Compare/contrast: Aqua Finance No.3, Atlantes Finance No. 6, Tagus Leasing No.1 Ltd