MARF registers the fourth synthetic securitisation issue by Santander

3 July, 2019

The bonds’ total issued amount reaches 342 million euros

• This is the largest operation by Banco Santander in this BME market

MARF, BME’s Fixed Income market, has admitted to trading a new synthetic securitisation bond issue launched by Fondo de Titulización PYMES Magdalena 3, set up by Sociedad Gestora Santander de Titulización, with a value of 342 million euros. It is the highest volume securitisation bond registered by Banco Santander in MARF to date, bank that reaches a global volume of 645 million euros listed in this market.

Through this operation the originator covers a portfolio of initial loans worth 3 billion euros granted by Banco Santander or any of its subsidiaries.

Banco Santander acted as the issue’s Arranger and Lead Manager and Santander de Titulización is the Registered Advisor with MARF. Clifford Chance provided the participants in the transaction with legal advice in the Spanish legislation, while the law firm Walkers in the Irish, which affects the credit insurance subscribed by the Fund.

By using synthetic securitisation originators transfer the credit risk associated with a portfolio of assets they own through the acquisition of credit insurance instruments in the form of Credit Defult Swaps, without transferring the assets to a third party, like in traditional securitisation. In addition, in the case of synthetic securitisation of loans granted by financial institutions and in accordance with the terms envisaged by the banking regulations, the transferring firm releases the regulatory capital linked to the portfolio and opens up the possibility of granting new loans.

Santander de Titulización SGFT is a management company incorporated in December 1992 and registered in the Special Registry of the Spanish securities watchdog - the CNMV. Santander de Titulización structures all types of Funds: RMBS, SMEs, Consumer, CLOs, ABCPs, etc and currently manages Securitisation Funds with Fixed Income instruments issued for an outstanding amount of over 35 billion euros.

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