Swedish RMBS securitisation with new structure by Svensk Hypotekspension
Svensk Hypotekspension AB, through its wholly-owned subsidiary Svensk Hypotekspension Fond 1 AB (publ), issued on 31 August 2010 SEK 900,000,000 mortgage backed notes. The notes are divided into two classes, SEK 318,000,000 with floating rate interest and SEK 582,000,000 with fixed rate interest. The notes have been given an ‘AA’ rating by Fitch Ratings Ltd and will be listed on NASDAQ OMX Stockholm. The initial investors consist primarily of major pension funds.
The notes are backed by a portfolio of so called equity release mortgages (loans secured by real property or cooperative flats, with interest accumulating until the borrower moves permanently from the property or dies). The timing of interest payments and repayment of principal on the notes is dependent on the cashflow from the portfolio. The entire documentation is governed by Swedish law and the collateral is held by CorpNordic Sweden AB, which is also acting as agent for the bondholders.
The transaction is the first securitisation to utilise a Swedish domestic issuer since 2004, and the first European securitisation of equity release collateral since 2005.
Together with the management of the company and Barclays Capital as arranger, Mannheimer Swartling structured and documented the transaction. DnB NOR Bank Sverige acted as issuing agent. Barclays Capital retained Advokatfirman Vinge as legal advisers.
Mannheimer Swartling’s team consisted of André Andersson, Mattias Lampe, Anders Erasmie, Christoffer Andersson, Veronica Stiller, Rasmus Fahlén, Amanda Rask and Gustaf Günther.