First Citizen Finance’s €176 Million Car Loan Securitisation

Matheson advised Deutsche Bank AG as Arranger and Joint Lead Manager and Citigroup Global Markets Limited as Joint Lead Manager, in relation to the €176 million asset backed securities issued by Citizen Irish Auto Receivables Trust 2020 DAC in November 2020.

The transaction represents the third public securitisation by First Citizen Finance DAC and the largest of its securitisations to date.

The transaction is a 13 month revolving cash securitisation of car loans (hire purchase contracts and leases) extended to Irish borrowers by First Citizen Finance DAC. The Class A Notes were rated AAA / Aaa by S&P and Moody’s respectively. The bonds were priced to carry an effective interest rate of 0.3 per cent, based off the current level of the variable market rate at which banks lend to each other. The deal has a facility where First Citizen can ultimately refinance €225 million of loans with the bond investors.

The portfolio consisted of over 13,000 contracts originated predominantly since 2018. First Citizen Finance DAC will act as servicer of the portfolio.

Citizen Irish Auto Receivables Trust 2020 DAC (Citizen Auto 2020) is an ABS transaction backed by a pool of new and used auto finance receivables. The preliminary pool predominantly comprises consumer hire-purchase agreements plus a relatively smaller proportion of commercial hire-purchase, acquisition lease, and contract hire agreements originated by First Citizen Finance DAC to its private retail and commercial clients in Ireland.

The Matheson team providing sole legal and tax advice to Deutsche Bank and Citi on the transaction was led by Finance and Capital Markets Partner, Turlough Galvin (Picture), and David Kiernan. Matheson also acted as listing agent.

Involved fees earner: Turlough Galvin – Matheson; David Kiernan – Matheson;

Law Firms: Matheson;

Clients: Citigroup Global Markets Ltd; Deutsche Bank;

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