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Raiffeisen Group concludes largest leasing securitization in CEE region

Raiffeisen Leasing Polska S.A. (Raiffeisen Leasing), the Polish leasing subsidiary of Raiffeisen International Bank-Holding AG (Raiffeisen International) has closed a €167 million vehicle leasing securitization transaction, the bank announced.  

The transaction is the first of its kind in Poland. It is among the largest securitization transactions ever structured in Central and Eastern Europe (CEE), and is the largest leasing securitization closed to date in the region. The transaction refinances more than 10,000 individual leasing contracts with Polish small- and medium-sized companies and micro-companies and has an average tenor of approximately four years. The transaction was structured and arranged jointly by State Street Global Markets LLC and Raiffeisen Zentralbank Österreich AG (RZB). Via its listed subsidiary Raiffeisen International, RZB operates one of the leading banking and leasing networks in CEE.

Securitization is an efficient means of funding and transferring the risk of a portfolio of loans or leases from their originator to investors via the capital markets. Securitization transactions are widely used by banks, leasing companies and other corporations to obtain refinancing at attractive rates and to repackage the risk of asset portfolios so that it can be efficiently transferred to the capital markets. Through this transaction, Raiffeisen Leasing transferred receivables arising from a portfolio of vehicle leasing agreements to ROOF Poland, Sp z o.o. (ROOF), a Polish company specifically incorporated for this transaction. ROOF financed its acquisition of the portfolio by issuing senior and junior-ranking notes to investors and by taking a subordinated loan. The notes and loan are limited-recourse instruments whereby payment of interest and principal is made solely with funds collected from the lessees of the securitised contracts. The creditors of ROOF have no recourse to Raiffeisen Leasing.

The relationship between Raiffeisen Leasing and its customers remains unchanged since their contracts will still be administered by Raiffeisen Leasing. However Raiffeisen Leasing's customers will benefit from the participation of the European Investment Bank (EIB) in the transaction as an investor in the senior notes issued by ROOF. Under the terms of the transaction, Raiffeisen Leasing will pass on to its customers the funding benefits associated with the interest rate on the note placed with the EIB.