A-Best 19: 19 November 2020
The proceeds of the issue of the Notes will be applied to fund the purchase of an initial pool of monetary receivables and other connected rights arising from a portfolio of fixed rate auto loans granted by FCA Bank Deutschland GmbH to retail customers for the purposes of purchasing cars. During the Revolving Period the Originator may, subject to the satisfaction of certain conditions, sell to the Issuer, on a monthly basis, additional pools of monetary receivables and other connected rights arising from further portfolios of auto loans granted by FCAB to retail customers for the purposes of purchasing cars and having substantially the same characteristics as the Initial Pool. The principal source of payment of interest and, during the Amortisation Period, of repayment of principal on the Notes will be collections and recoveries made in respect of the Portfolio.
Eligibility criteria (includes): the Originator is the sole creditor and owner of the Receivable including any Related Claims and Rights and the Loan Collateral; it results from a Loan Agreement that constitutes either a Classic Loan, a Formula Loan or a Balloon Loan; at least one Instalment is recorded as fully paid; no Instalments are due and unpaid; it is owed by a Borrower which is, as at the time of entering into the relevant Loan Agreement, a physical person resident in Germany, with German nationality and, as at the relevant Pool Transfer Effective Date, is not a FCAB employee; it arises from a Loan Agreement governed by German law and is denominated in Euro; at least two Instalments of the Loan Agreement have already been duly recorded by FCAB as paid by the relevant Borrower; it amortises on a monthly basis; the Loan was granted solely for the purpose of financing the purchase of a Vehicle.
As at the portfolio cut-off date the portfolio comprised of 35,288 loans granted to 33,524 borrowers, where the average net present value loan (NPV) per borrower is Eur16,676 and the largest borrower concentration is of Eur342,796 (representing 0.06% of current balances). Loan Type (by no of contracts / % outstanding principal): Balloon Loans – 18,716/64.9%, Retail – 13,076/24.7%, Formula – 3,496/10.4%. Borrower category: Private – 24,589/62.1%, Commercial – 10,699/36.9%. Car type (by NPV): new - 66.0%, used - 34.0%. WA seasoning is 12.33 mnths. Regional concentration: Baden-Württemberg – 19.8%, Bayern – 18.8%, Nordrhein-Westfalen – 17.7% and Hessen – 10.5%.
Significant investor: FCA Bank Deutschland GmbH will purchase the Class A Notes (including the Retained Class A Notes) from the Issuer and may offer such Notes, from time to time, in negotiated transactions or otherwise, at varying prices to be determined at the time of the sale. FCA Bank will purchase the Class B Notes, the Class C Notes, Class D Notes and the Class E Notes from the Issuer and may offer such Notes, from time to time, in negotiated transactions or otherwise, at varying prices to be determined at the time of the sale. FCA Bank will purchase the Class M Notes.
EU Risk Retention: The Originator will retain for the life of the transaction a material net economic interest of not less than 5% in the transaction in accordance with Article 6 of Regulation (EU) No 2017/2402 of the European Parliament. As of the Issue Date and thereafter on an on-going basis, the Originator will retain a material net economic interest of not less than 5% of the initial Note Principal Amount of each of the Class A Notes, the Class B Notes, the Class C Notes, the Class D Notes, the Class E Notes and the Class M Notes, representing the nominal value of each of the tranches sold or transferred to the investors.
US Risk Retention: The Originator does not intend to retain at least 5% of the credit risk of the Issuer for the purposes of the U.S. Risk Retention Rules, but rather intends to rely on an exemption provided for in Section __.20 of the U.S. Risk Retention Rules regarding non-U.S. transactions.
STS: The Originator intends to notify the European Securities Markets Authority that the transaction will meet the requirements of Articles 20 to 22 of the European Securitisation Regulation (the STS Notification).
Compare/contrast: A-Best 18, Red & Black Auto Lease Germany 3 S.A, Globaldrive Auto Receivables B.V. 2020-A