Banca di Cividale, with Banca Finint and Hogan Lovells, completes its first securitisation with "STS label" for 458.5 million euro

Press releases | 20 November 2019

The transaction is the first for the Bank to be considered "Simple, Transparent and Standardised" as per the new EU Regulation.

Cividale del Friuli, 24 October 2019 – Banca di Cividale has completed a new securitisation transaction on receivables arising from mortgage and unsecured loans granted to Small and Medium Enterprises for a total amount of 450 million euro.

FISG, a company belonging to the Banca Finint Group and specialised in arranging securitisation transactions, has acted as Arranger. Hogan Lovells Studio Legale has acted as the transaction legal counsel and, for management issues, Banca di Cividale was assisted by Securitisation Services, a company that is part of the Banca Finint Group.

The transaction was arranged in line with the market best practices, so as to meet the requirements provided for by the new regulation on "simple, transparent and standardised" (STS) securitisations. The securitisation has already obtained the "STS label".

Upon the Bank's assignment of a portfolio, the special purpose vehicle called "Civitas SPV S.r.l." has issued on 17 October 2019 a class of floating-rate securities equal to 320 million euro, rated A (high) (sf) and A (sf) by DBRS and S&P respectively, a class of floating rate mezzanine securities of 50 million euro, rated BBB (low) (sf) and BBB (sf) by the same agencies, DBRS and S&P, and finally a class of unrated junior securities, for an amount equal to 88.5 million euro. The senior and mezzanine securities of the transaction are both listed on the ExtraMOT PRO segment of the Italian Stock Exchange.

The securitisation - for a total amount of 458.5 million euro - allows Banca di Cividale to further strengthen its financial instruments available for refinancing operations with the European Central Bank or to raise new funds from the capital market, with the ultimate aim of further strengthening loans to households and SMEs in the Northeast.

The team involved was led by Corrado Fiscale, partner together with Giulia Arenaccio, counsel - Diego Guardì, associate and Alessia Cipitì, trainee. Fulvia Astolfi, partner and Maria Cristina Conte advised on tax issues.