Global law firm White & Case LLP has advised Avida Finans AB (Avida) on its first synthetic securitisation transaction in accordance with the EU regulations on simple, transparent and standardised securitisations (STS).
"The White & Case team advised Avida on a milestone transaction," said White & Case partner Dennis Heuer, who led the Firm's deal team. "Through the transfer of significant credit risk, it will strengthen Avida's balance sheet and facilitate its continued support to consumers across the Nordics."
The reference portfolio consists of consumer loans with a total value of up to SEK 2.8 billion originated by Avida and granted to borrowers in the Nordics. The transaction involves the placement of the mezzanine tranche in the form of credit linked notes with private investors. The objective for Avida is to hedge the unexpected loss of the reference portfolio and achieve the necessary transfer of credit risk to free up risk-weighted assets. Revel Partners acted as the arranger and financial adviser to Avida on the transaction.
Avida is a credit market company headquartered in Stockholm and specialising in consumer and SME financing.
The White & Case team which advised on the transaction was led by partner Dennis Heuer (Frankfurt) and included partners Tom Falkus (London) and Michael Bark-Jones (Stockholm), local partner Claire-Marie Mallad (Frankfurt), associate Alexander Berlin-Jarhamn (Stockholm) and transaction lawyers Nga Nguyen and Anna Spentzou (both Frankfurt).
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