Polish leasing fund Europejski Fundusz Leasingowy has successfully completed the second securitisation of its lease receivables portfolio with a value of nearly PLN 2.2 billion. The transaction is one of the largest of its kind on the Polish market in recent years. A special purpose vehicle (SPV) set up by EFL “Lease ABS 2021-1 DAC” issued a total of PLN 1.7 billion in bonds which were purchased by the European Investment Bank and ING Bank Śląski. The European Investment Fund also participated in the transaction, underwriting a portion of the bonds. The proceeds will be used to finance EFL’s leasing activities, which support the development of small and medium-sized enterprises in Poland. EFL’s consultants on the programme were Crédit Agricole Corporate and Investment Bank and StormHarbour Securities LLP.
Under the transaction, the SPV purchased a portfolio of lease receivables with a total value of PLN 2.2 billion from Europejski Fundusz Leasingowy (EFL) S.A. This portfolio serves as collateral for PLN 1.7 billion in bonds purchased by financial institutions. The programme covers leases of both new and used fixed assets such as cars and lorries, equipment and machinery. The issued bonds bear interest at a floating rate based on the WIBOR (Warsaw Interbank Offer Rate) 3M. The lead investor was the European Investment Bank (EIB), which purchased bonds worth PLN 0.9 billion. The remaining part was underwritten by the European Investment Fund (EIF) and purchased by ING Bank Śląski
“This is the second time European investors have placed their trust in the EFL brand. Once again, we have successfully passed the credibility test in which multiple areas of our business were vetted. We have run our business in an effective and steady manner for 30 years. This fact was appreciated by the investors who took up the securities. By concluding another securitisation transaction, we were able to obtain a significant amount of long-term funding, which will be used to finance the needs of our clients in the coming months,” said Radosław Woźniak, President of the Management Board of EFL S.A.
“The economic recovery is gaining momentum across Europe, including Poland. As the EIB Group, we would like small and medium businesses to benefit as much as possible from this momentum and to actively participate in the post-pandemic recovery. This is one of the basic assumptions underpinning our investment support, and it is also reflected in our transaction with Europejski Fundusz Leasingowy,” said EIB Vice-President Teresa Czerwińska.
“We are delighted to be able to support EFL again in this important transaction. Leasing is a very important source of funding for Polish small and medium-sized enterprises and our aim is to facilitate their access to the resources they need,” added Alain Godard, CEO of the European Investment Fund, which is part of the EIB Group.
The transaction is a three-year revolving one, meaning that the repaid portion of the securitised portfolio can be replaced with new lease receivables. The final bond redemption date depends on the actual debt repayment rate after the end of the three-year revolving period.
EFL conducted its previous securitisation programme in 2017
Under the transaction, the SPV purchased from EFL S.A. a portfolio of lease receivables with a value of PLN 2.2 billion, on the basis of which PLN 1.8 billion in bonds were issued. The debt securities were taken up by both international and domestic financial institutions. The EIB became the lead investor, taking up PLN 1.1 billion worth of bonds. The EIB’s involvement meant that the financing terms for the transaction were very attractive. The European Investment Fund (EIF) also provided support by underwriting the remaining portion of the bonds, which were purchased by private investors.