Credito Valtellinese banking group (Creval Group) announced yesterday a securitization of loans to small and medium enterprises (SMEs) with support from the European Investment Bank (Eib) and the European Investment Fund (Eib) (download the press release here).
In detail, the operation was carried out by the special purpose vehicle Quadrivio SME 2014, which issued four different classes of asset backed securities (abs) (classes A1, A2A, A2B, B). The total issue of the three senior classes amounts to 390 million euro, with a rating of AA/AAA from Standard & Poor’s and DBRS. The Eib subscribed one of the classes (class A2A), for the amount of 200 million euro., while the Eif guarantees 80 million euro in class A1 securities. The securities benefit, thanks to the EIF’s backing, from better prudential treatment and favourable market conditions.
In addition to the amount of the facility, the Eib’s intervention helped Creval attract investments from other institutional investors, who subscribed an additional 110 million euro in abd notes, thus creating new funding available for SMEs, for the cited total of 390 million euro.
