Download PRESS RELEASE Volksbank successfully concludes

PRESS RELEASE
Volksbank successfully concludes VOBA 6 securitisation
Bolzano, 12 October 2016
Volksbank successfully concluded the placement of the “VOBA 6”
securitisation: the interest among investors in the securitisation collateralised
with SME loans was strong and the offer substantially oversubscribed.
Volksbank strengthens its liquidity with the transaction and proves that it has
very good access to the international credit market.
In the course of a European road show, Südtiroler Volksbank offered the “A2 tranche” of
the “VOBA 6” securitisation for subscription to institutional investors. There was great
interest: subscription orders for EUR 936.8 million were received in response to a first offer
of EUR 257.4 million. The bank evaluates the international mix of investors (requests have
reached Volksbank from nine European countries) as solid proof of trust in a difficult
economic environment.
The “VOBA 6” securitisation bundles loans of small and medium-sized enterprises (SME).
The portfolio reaches across industries and it is distributed over northeastern Italy. The
good rating assigned by the rating agencies Moody’s and DBRS (“Aa2” and “AA”) reflects
the strong credit quality of the portfolio.
“Our
securitisation was met by tremendous interest from institutional investors – they are
very interested in investing in northeastern Italian small and medium-sized enterprises
through VOBA 6. Our excellent credit portfolio and in particular the strong credit quality of
our SME portfolio convinced national and international investors – this is what the strength
of our credit business is, because we support small and medium-sized enterprises with
loans in our entire catchment area and know our corporate customers and their
businesses inside-out,” said Johannes Schneebacher, General Manager of Volksbank.
The subscription period was closed on 6 October and the transaction will be executed on
17 October. The overall volume of the securitisation is EUR 528 million. The tranches that
have not been offered for sale will be repurchased by Volksbank itself – they serve to
create reserves eligible for deposit at the European Central Bank. Volksbank further
strengthens its liquidity position through the transaction.
“With this transaction, Volksbank proved again that it has good market access to the
capital market in which it can place important securitisations at attractive conditions. At the
same time, we have created a flexible basis for ourselves with the transaction to conduct
future refinancing. The securitisation is part of our refinancing strategy, which also includes
long-term issues on the capital market besides the central pillar of customer deposits,” said
Martin Schweitzer, CFO of Volksbank.
Data and facts on the “VOBA 6” securitisation:
Financing volume:
EUR 528 million
A2 tranche:
EUR 257.4 million
Subscription orders:
EUR 936.8 million
Average term:
2 years
Rating:
Aa2 (Moody’s)
AA (DBRS)
Definition
Securitisation (Italian: cartolarizzazione) is understood to mean the issuance of tradeable
securities based on receivables, e.g. credits or loans.
In addition to its home market of South Tyrol, Südtiroler Volksbank, with registered office in
Bolzano, operates as a regional bank in the northeastern Italian provinces of Trent, Belluno,
Treviso, Pordenone, Vicenza, Padua and Venice. Südtiroler Volksbank maintains 185 branches
overall. The bank (established in 1886) has more than 1,400 employees and more than 58,000
members.