by
Marta Wałdoch
Rzecznik prasowy,Citi Handlowy
The value of securitization transactions co-organized this year by Citi Handlowy amounted to 4.5 billion zloty, which accounted for nearly 80% of all such transactions on the Polish market.
One of them was the record-high sale of leasing securities by PKO Leasing, finalized this month, to a securitization special purpose entity (SSPE), amounting to 2.5 billion zloty. Apart from Citi Handlowy, the transaction was arranged by PKO Bank Polski S.A. and Citigroup Global Markets Ltd.
- The securitization market in Poland is developing ever more dynamically. We observe an increasing interest in such transactions – 2019 was a record year in terms of the value of assets covered by securitization. Citi Handlowy has a rich experience in arranging such financing, local expertise combined with global know-how, which makes us a professional and reliable partner for such transactions, both in terms of obtaining financing and releasing the capital - said Maciej Kropidłowski, Vice President of the Management Board of Citi Handlowy.
Citi Handlowy has been the leader on this market for years. The value of financing of the securitization transactions co-organized by the bank in the last decade amounted to nearly 9 billion zloty, that is, a half of all such transactions on the Polish market. The bank was also #1 in terms of the number of executed transactions. Thus, the bank has been implementing a consistent strategy initiated in 2012, when we executed our first Polish, pioneer transaction with a public rating for Getin Noble Bank.
According to the data of Citi, Bloomberg and Concept ABS, in Europe, the value of primary issues of asset-backed securities amounted in 2018 to 74.3 billion euro, 17 percent more than in the previous year. The most transactions were executed by UK entities, the second and third place were taken, respectively, by German and Dutch entities.
Securitization is a form of financing which consists in selling good receivables (e.g. loan portfolio, leasing agreement portfolio) to a securitization special purpose entity. In order to purchase a portfolio of such receivables, a company issues securities which are bought by investors on the same day. As a result of the transaction, the originating entity (e.g. a bank, a leasing company) obtains financing. At the same time, the SSPE repays the issued securities solely with the income generated by the purchased receivables. Thanks to such a structure, investors purchase securities bearing risk dependent only on the risk of the asset portfolio itself, the so-called Asset Backed Securities (ABS).
