trending Market Intelligence /marketintelligence/en/news-insights/trending/TcgkDBuEsoWz6f2kN7C3WQ2 content esgSubNav
In This List

Sabadell securitizes €1B of loans

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Sabadell securitizes €1B of loans

Banco de Sabadell SA transferred roughly €1 billion of consumer loans into a securitization vehicle called Sabadell Consumo 1 with an average interest rate of 7.4% and an average duration of roughly two years.

The transaction was more than 3x oversubscribed by institutional investors and will be completed once the asset-backed securities issued by the securitization fund have been subscribed and paid for.

The transaction is expected to generate a capital gain of €80 million before tax, with a total positive effect on the bank's common equity Tier 1 ratio of approximately 10 basis points on a fully loaded basis, assuming a 50% dividend payout accrued on the capital gain. Excluding such a dividend, the positive effect in Sabadell's fully loaded CET1 ratio would be roughly 14 basis points.