Rheinhyp is to launch a €1.5bn cross-border securitisation of European commercial mortgages.
The issue, which is expected in mid-March via the Europe 2 vehicle, will pool together around 70 loans in the UK, France, Switzerland, Spain and Germany. This is the German mortgage bank’s second issue of this kind. Europa One, launched in April last year, was seen as a ground breaking deal because it resolved the problems associated with combining pools of loans from several countries. A synthetic securitisation using credit-linked notes resolves the problem of issuing debt which is backed by loans and properties in different legal juridictions.
The transaction allows Rheinhyp to dispose of assets with high-risk weightings. Rheinhyp can increase new loans at the same rate, without increasing the capital ratio of Commerzbank.
