Securitization at LBBW.

Broad expertise in the securitization of diverse assets via asset-backed commercial papers (ABCP) und asset-backed securities (ABS bonds).

 

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/ABCP and ABS bonds segment.

In a securitization transaction, an originator (producing company, leasing company or bank) sells revolving trade receivables, lease receivables/residual value receivables or loan receivables to a special purpose vehicle. The purchase price is refinanced by issuing ABCPs and ABS bonds on the money and capital markets. These debt instruments (securities) are secured (backed) by the purchased receivables (assets). Receivables management (servicing) continues to be the responsibility of the originator. The sale is usually effected without any disclosure to the originator’s customers. The ABS bond or ABCP transaction is tailored precisely to the needs of the originator and its portfolio.

The ABCP conduit “Weinberg Capital DAC” sponsored by LBBW has many renowned reference customers thanks to LBBW’s excellent sponsor rating and is positioned extremely well with Fitch/Moody’s short-term ratings of F1/P-1.

Benefits for your company, depending on the structure:

  • Liquidity is secured and managed in the long term
  • Diversification of refinancing sources
  • Maturity-matched funding
  • Equity optimization/RWA management
  • Anonymous access to money and capital markets at attractive conditions
  • 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

We would be glad to arrange a tailored mid-market ABS/ABCP transaction for your company.

 
Contact

Landesbank Baden-Württemberg
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