Hogan Lovells advises a group of banks on a €420 million public STS and CRR securitisation

Hogan Lovells represented Bank of America as arranger, joint lead manager and swap counterparty and Citi, BNP Paribas and Standard Chartered as joint lead managers on Finance Ireland’s fifth residential mortgage backed securitisation (RMBS) in the past four years, valued at €420 million.

The transaction will be designated as ‘simple, transparent, and standardised’ (STS), and additionally meets the CRR requirements allowing enhanced capital requirements relief and the ability for bank investors to position their notes for their liquidity coverage ratio calculations. The transaction also involved the issuance of a full capital stack and excess spread notes. The Class A Notes are expected to be eligible collateral for Eurosystem eligibility purposes.

Finance Ireland, the originator and sponsor, is Ireland’s largest non-bank lender with businesses across residential mortgages, motor finance, asset finance and leasing, commercial mortgages and agricultural finance sectors.

The Hogan Lovells team was led by structured finance and securitisation partner Julian Craughan, senior associate George Kiladze and trainee solicitor Aun Hussain, with support from structured products and derivatives partner Jennifer O’Connell and senior associate Nicholas Watmough.

Hogan Lovells’ trust and agency team advised U.S. Bank as trustee and agents in relation to the transaction. The Hogan Lovells trust and agency team was led by partner Kit Johnson with support from counsel Megan James, associate Axel Delaud and trainee solicitor Elvis Zhang.