5 June 2014
- Jonathan Lewis, Frédérick Lacroix, Eric Davoudet, Sophie Guilhem-Ducléon, Hélène Kouyaté, Jitka Susankova
Clifford Chance, as drafting counsel, advises Crédit Foncier, as Lead Arranger, on the issuance of French residential mortgage-backed securities (RMBS) issued by FCT CFHL-1 2014, for an amount just below €1bn
Significant features of this Transaction include that:
- It was the first French securitisation of this asset class (RMBS) to achieve full-deconsolidation;
- It re-launches the "real" French RMBS market; according to Crédit Foncier, it is the first RMBS transaction to be fully placed with investors since 1995; and
- It included the innovative feature of "re-marketable securities": this permits the re-fixing of the coupon on the Class A2 note series every five years notwithstanding the long maturity of the underlying home loans.
This transaction securitises a portfolio of 8,900 loans amounting €922m, which is a portfolio of loan receivables originated and managed by Crédit Foncier. The underlying loans are loans made to French residents in order to finance the acquisition of residential real estate properties. The €804m senior notes rated AAA/Aaa (Fitch IBCA/Moody's) issued by FCT CFHL-1 2014 were listed on the regulated market of the European Luxembourg Stock Exchange.
Investors subscribed more than three times the amount of the notes issued by FCT CFHL-1 2014, making this securitisation a successful transaction.
Clifford Chance was drafting counsel to this transaction as legal adviser to Crédit Foncier in its capacity as Lead Arranger. The team was composed of Jonathan Lewis (partner), Vincent Hatton (counsel), Sophie Guilhem-Ducléon (counsel), Vincent Danton, Vincent Poilleux, Gabriel Mauger, Alice Latour, Foucauld Prache, Sam Rollison, and Basma Seif. Frédérick Lacroix (partner), Sébastien Praicheux (counsel), and Hélène Kouyate advised on regulatory aspects. Eric Davoudet (partner) and Jitka Susankova (counsel) advised on tax.