Hogan Lovells advises Société Générale and Intesa Sanpaolo in the first public CQS securitisation of Sigla Credit

CQS loans are a particular type of Italian loan that have the feature of being repayable through the borrower's salary or pension assignment (up to one fifth) or payment delegation of such salary or pension in favour of the lender.

The securitisation has been structured in accordance with the Italian securitisation law (i.e. Law 130/99), through the special purpose vehicle Pelmo S.r.l. and the issue by the latter of limited recourse asset-backed notes under Law 130/99. The senior and mezzanine notes have been listed on the Luxembourg Stock Exchange, rated by DBRS and Moody’s and placed in the primary market with professional investors through the assistance of Société Générale and Intesa Sanpaolo, acting as Joint Lead Managers and Bookrunners. The junior notes have been subscribed by Sigla Credit for risk retention and credit enhancement purposes.

This has been the first public securitisation carried out by Sigla Credit and one of the first public securitisations carried out in Italy after the Covid-19 crisis.

The Hogan Lovells team was led by partner Federico del Monte with support from associates Diego Guardì and Matteo Scuriatti. The tax matters were dealt with by counsel Serena Pietrosanti and associate Maria Cristina Conte. Hogan Lovells Paris also assisted BNP Paribas as hedging counterparty with a team led by the partner Sharon Lewis and comprising of associates Ailsa Davies and Joanna Veitch.