Banque Populaire plans to issue 90.2 million ($112 million) of securities backed by fixed-rate French residential mortgages that finance both purchases and home improvements, according to a Standard & Poor’s.
The issuer is part of the second-largest retail banking group in France, the BPCE group. The transaction dubbed, ELIDE FCT Compartiment 2014-01, is a French “fonds commun de titrisation” (FCT), a type of securitization vehicle set up under French law.
S&P expects to rate the class A1 notes, AA’ and the class A2 notes AA’. The notes have a legal final maturity of March 26, 2043 and are structured with credit enhancement at 9.91%.
The pool is made up of fixed-rate, amortizing loans that pay fixed monthly installments. The pool also has a low weighted-average debt-to-income ratio of 34.11%. It has a weighted average loan balance of 125,936 and nearly 60% of the loans have paid down less that 18 months.