Premium Credit’s inaugural public securitisation deal named as ‘EMEA Structured Finance Issue’ award winner
LONDON - January 31 2018. Following Premium Credit Ltd’s (Premium Credit) inaugural public securitisation of insurance premium finance and other instalment credit receivables, the issue has been named as IFR’s EMEA Structured Finance deal of the year 2017.
The Premium Credit deal, the first securitisation of this asset class in Europe, has been described as a marker in the return of securitisation as a viable funding route for growing businesses.
The inaugural issuance, Series 2017-1, generated significant investor demand and closing priced well inside initial marketing levels on a final order book of £300m, oversubscribed across all tranches. Premium Credit retained £18m of the paper. The public notes benefitted from a number of credit enhancement features.
As part of its long-term funding strategy, Premium Credit wanted a blend of private and public facilities. A master trust was structured to accommodate both and ensure that future series of public ABS notes could be issued, while still referencing the same underlying asset portfolio. As such, a second issuance, Series 2017-2, successfully concluded in November, which was again oversubscribed across all tranches, and priced tighter than the inaugural launch.
Tom Woolgrove, Premium Credit’s CEO commented: “We are delighted that our opening public securitisation issue has been recognised as the EMEA Structured Finance Issue deal of the year. The transaction has enabled Premium Credit access to the public market, diversifying our funding and reducing our overall funding costs – a strategic goal achieved to great effect, further strengthening our position as the UK and Ireland’s leading provider of premium finance.”
“This award is significant, acknowledging a first securitisation of its kind in Europe” added Nayan Kisnadwala, Premium Credit’s CFO. “We are an innovative forward thinking company, working hard to provide beneficial outcomes for customers who choose to finance their insurance policies – this accolade recognises this approach.”
The Award was presented at the 2017 IFR Awards Dinner, celebrating capital markets excellence - Grosvenor House, London on Tuesday 30 January 2018.