Securitization at LBBW.

Broad expertise in the asset-backed segment.

 

With more than 65 successfully realized transactions for corporate clients, LBBW has a broad track record of more than 15 years in the mid-market ABS segment.

Via Weinberg Capital DAC, Dublin, LBBW sponsors the mid-market ABCP program with the most transactions. Because of LBBW's excellent sponsor rating, the Weinberg program is positioned extremely well with Fitch/Moody's short-term ratings of F1/P1.

Benefits for your company

  • Instrument for securing long-term liquidity and to diversify existing sources of financing;
  • Potential for a reduction of total assets under German Commercial Code (HGB) and IFRS;
  • Financing volume adjusts to the development of total receivables (figuratively, an ABS "breathes" with the accounts);
  • Positive incentives to improve discipline and improve the quality of receivables management (shorter settlement times for receivables, determining standard processes);
  • Provides financial muscle for a potential expansion strategy;
  • Anonymous form of financing on the capital market.

We will arrange with pleasure a tailored ABCP transaction for your company.

 

Securitization of trade receivables

When setting up a mid-market ABS, a company sells revolving trade receivables to a special purpose vehicle (Weinberg Capital DAC, Dublin), which will refinance the purchase price by issuing Asset Backed Commercial Papers ("ABCP") on the capital market. These debt instruments are referred to as Asset Backed Securities (ABS), as they are secured (backed) by the purchased receivables (assets). Receivables management for the mid-market ABS continues to be the responsibility of the seller. The sale can therefore be effected without any disclosure to the company's customers. The mid-market ABS is as useful an instrument for small and medium-sized enterprises as it is for large corporations, and individually tailored to their needs.

 

Securitization of loans, leases and residual values

Benefits for your company

  • Attractive refinancing instrument;
  • Liquidity is abounded and managed;
  • Diversification of refinancing sources;
  • Access to money markets and capital markets.
 

Definition of loans & leases

In the "loans & leases" category of receivables, a so-called originator (e.g. leasing companies or banks) sells revolving, interest-bearing receivables (loan receivables/lease receivables/residual value receivables) to a special purpose vehicle (Weinberg Capital DAC, Dublin), which will refinance the purchase price with the issue of Asset Backed Commercial Papers on the money market. These debt instruments are referred to as Asset Backed Securities (ABS), as they are secured (backed) by the purchased receivables (assets). Depending on the lease object, this can also involve the sale of residual values.

Receivables management (often also referred to as servicing) continues to be the responsibility of the originator. The sale can therefore be effected with or without disclosure to the customer of the bank or lease provider.

 

ABS bond/term transactions

Benefits for your company, depending on the structure

  • Generation of funding/liquidity with matching maturities;
  • Access to the capital market/acquisition of new investors;
  • Equity optimization/RWA management;
  • High public profile.
 

Definition of ABS bond/term transactions

In ABS bond/term transactions, a so-called originator (captives, leasing company, provider of specialized financing) sells (revolving) receivables (loan receivables of banks/financial institutions of all kinds; lease receivables and residual values of companies) to a special purpose vehicle (SPV), which in turn will finance the purchase price with the issue of externally rated securities on the capital market. These debt instruments are referred to as Asset Backed Securities (ABS) or ABS bonds, as they are secured (backed) by the purchased receivables (assets).

Receivables management (often also referred to as servicing) continues to be the responsibility of the originator. The sale can therefore be effected without any disclosure to the company's customers. ABS bonds are tailored individually to the originator's needs.

 

Together successful means at LBBW: We recognize and understand your needs and develop the right solutions together with you.

We will arrange with pleasure a tailored ABCP and ABS transaction for your company based on lease, loan and residual value receivables.

 
Contact

Landesbank Baden-W├╝rttemberg
Am Hauptbahnhof 2
70173 Stuttgart

Sascha Chevalier
Securitization Trade Receivables
Tel.: +49 711 127-49722

 

Florian Pierer
Securitization Loans & Leases
Tel.: +49 711 127-49718

CorporateFinance@LBBW.de