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Matheson Advises on Innovative Irish Auto Loan Securitisation
Matheson advised Deutsche Bank AG, London Branch as Arranger and Lead Manager, in relation to the €138 million asset backed securities issued by Citizen Irish Auto Receivables Trust 2018 DAC in December 2018. The transaction represents the second public securitisation by First Citizen Finance DAC. The transaction is a 12 month revolving cash securitisation of car loans (hire purchase contracts and leases) extended to Irish borrowers by First Citizen Finance DAC. The Class A Notes were rated AAA / Aaa by S&P and Moody’s respectively.
A notable and novel feature of the transaction is that the revolving period is structured so as to enable Citizen Irish Auto Receivables Trust 2018 DAC to replenish its portfolio of car loans on a daily basis for an initial 12 month period. First Citizen Finance DAC has stated that: “the replenishment feature, the first of its kind in an Irish securitisation, means we can tap into additional funds through next year without having to organise a full new securitisation”. S&P have described the replenishment feature as “unique in the context of revolving deals”.
The transaction was fully documented under Irish law and the securities were listed on the Main Securities Market of Euronext Dublin.
The portfolio consisted of over 9,000 contracts originated between 2015 and 2018. First Citizen Finance DAC will act as servicer of the portfolio.
The Matheson team providing sole legal and tax advice to Deutsche Bank on the transaction was led by Finance and Capital Markets Partner, Turlough Galvin, and David Kiernan. Matheson also acted as listing agent.