Helaba Completes Second Landmark Credit Risk Sharing Transaction
Deal News | Dec 16, 2024 | Landesbank Hessen-Thueringen G
Landesbank Hessen-Thringen (Helaba) has successfully completed its second credit risk sharing transaction, which promises to release Risk Weighted Assets (RWAs) of approximately EUR 1.0 billion. The reference portfolio includes large corporate loans valued at around EUR 2.3 billion. This transaction aligns with STS compliance, meeting 'simple, transparent, standardised' criteria for securitisation. In this structure, loans are retained while default risks are synthetically transferred to investors through a securitisation special purpose entity (SSPE) known as Kingston Capital. The transaction featured three tranches, with Helaba retaining the equity and senior tranches and Kingston Capital providing protection for the mezzanine tranche via credit-linked notes sold to institutional investors. Helaba played multiple roles, including Originator and Lead Manager, with Alantra acting as Co-Arranger. The deal received legal support from Clifford Chance, financial oversight from Deloitte, and verification from STS Verification International. Key executives express optimism about Helaba’s enhanced capacity for future financing needs, highlighting the transaction's swift execution and economic performance.
Sectors
- Banking
- Financial Services
- Securitisation
Geography
- Germany – Landesbank Hessen-Thringen (Helaba) is based in Germany, highlighting the regional focus of the financial operations discussed.
- International – The participation of international institutional investors in the transaction gives it a global dimension, indicating cross-border financial engagement.
Industry
- Banking – The article revolves around a banking entity, Helaba, executing a complex credit risk sharing transaction. It showcases innovations in balance sheet management within the banking sector.
- Financial Services – The transaction involves financial structuring, risk management, and securitisation, which are core aspects of the financial services industry.
- Securitisation – Central to the article is the execution of a securitisation transaction, a method used in the finance industry to manage risk and capital efficiently.
Financials
- EUR 2.3 billion – Value of the large corporate loans in the reference portfolio.
- EUR 1.0 billion – Approximate release of RWAs for Helaba as a result of the transaction.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Helaba (Landesbank Hessen-Thringen) | Originator, Co-Arranger, Lead Manager | Company | A German bank executing its second credit risk sharing transaction, playing a central role in this securitisation process. |
| Kingston Capital | Securitisation Special Purpose Entity (SSPE) | Company | Provided credit protection for the mezzanine tranche and facilitated the issuance of credit-linked notes. |
| Alantra | Co-Arranger and Financial Advisor | Company | Financial advisory firm involved in structuring the transaction. |
| Deloitte | Support | Company | Provided financial support and oversight for the transaction. |
| STS Verification International | Verification | Company | Ensured the transaction met STS compliance standards. |
| Clifford Chance | Legal Advisor | Company | Provided legal advisory services for Helaba in this transaction. |
| Astrid Joost-van der Spek | Managing Director, Head of Capital Markets | Person | Gave comments on the strategic importance of the transaction for Helaba. |
| Holger Beyer | Managing Director, Alantra | Person | Commented on the collaborative success in achieving the transaction. |
| Tim Austrup | Head of Corporate Banking | Person | Gave insights on the improved economics and efficiency of the transaction. |