French consumer lender Socram Banque has hit the road with a EUR460 million ($606.3 million) securitization of auto loans, less than a year after returning to the public auto ABS market following a five-year hiatus. BNP Paribas and Natixis, the joint lead managers and arrangers, are roadshowing TitriSocram 2012-1 with investors this week with pricing expected next week.
The new trade consists of a EUR407 million ($536.4 million) senior 2.3-year class A bond, which will be sold to investors and is eligible for European Central Bank repo funding, and a EUR53 million ($69.9 million) junior B tranche which will be retained by the issuer.
The auto ABS market in Europe has seen spreads remain relatively stable, while spreads in certain residential-mortgage backed bonds have drifted out, according to Damian Saunders, head of ABS syndicate at BNP Paribas in London. “Spreads have been resilient in autos and this offers a relatively stable funding source,” Saunders told SI Wednesday.
Thierry Jollivet, cfo at Socram Banque told SI in May that securitization is set to play an increasingly important role in the firm’s funding strategy, alongside bank loans and medium term notes and bonds (SI, 5/12). The firm has tended to be an infrequent user of securitization since launching its auto ABS program in 2001.
The new deal is the firm’s 6th publicly-placed ABS, and is backed with auto loans made to private individuals across France. It follows last May’s TitriSocram 2011-1 (SI, 4/21). That deal eventually saw its EUR409.5 million ($539.9 million) senior A bond price at 1-month EURIBOR plus 90bps, inside of the 95-100 bps guidance, while the EUR40.5 million ($53.3 million) was retained. ....