The supervisory board of Bank BGZ BNP Paribas SA approved a securitization deal under which the lender will sell receivables arising from cash and car-loan agreements with a total nominal value of up to 2.4 billion Polish zlotys at the date of sale to BGZ Poland ABS1 Designated Activity Company, a special-purpose vehicle registered in Ireland.
The board's approval also applies to the sale of additional receivables from cash and car-loan agreements to the SPV within a two-year revolving period under the condition that the total current value of all sold receivables on every day of the revolving period does not exceed 2.6 billion zlotys, the lender said Dec. 4.
The receivables will be sold for the price consisting of the initial price equal to the nominal value of the receivables, and the deferred price equal to the part of the SPV's interest income in a given settlement period.
When finalized, the transaction will increase the bank's common equity Tier 1 ratio/Tier 1 ratio and total capital ratio by 0.38 percentage points and 0.49 percentage points, respectively, at the stand-alone level and by 0.34 percentage points and 0.44 percentage points, respectively, at the group level, while also boosting its liquidity position, the lender noted.
BNP Paribas SA is the ultimate parent of BGZ BNP Paribas.
As of Dec. 4, US$1 was equivalent to 3.55 Polish zlotys.
