Hogan Lovells advises J.P. Morgan on new Banca Agricola Popolare di Sicilia securitisation
Deal News | Aug 04, 2025 | Hogan Lovells
Hogan Lovells provided legal advisory services to J.P. Morgan in a securitisation transaction with Banca Agricola Popolare di Sicilia (BAPS). A special purpose vehicle (SPV) named BAPS PMI S.r.l. was created for the transaction, which involved J.P. Morgan offering a senior loan approximately worth €140 million. BAPS underwrote the junior tranche, keeping full exposure to risk, thereby avoiding any derecognition effects in accounting. Furthermore, an advised credit line negotiated between the parties could potentially elevate the financing to a sum of €400 million, offering BAPS the means for future disposals and enhanced liquidity. Banca Finint attended the transaction in several roles, fulfilling tasks as the servicer, calculation agent, and more, while BNP Paribas served as the transaction bank and paying agent. The transaction was led by a team from Hogan Lovells, under the stewardship of managing partner Patrizio Messina, with contributions from several experts within the firm across tax and legal jurisdictions.
Sectors
- Financial Services
- Legal Services
Geography
- Italy – Banca Agricola Popolare di Sicilia is based in Italy, and the transaction primarily involves Italian entities and regulations.
- United Kingdom – English law aspects were handled by Hogan Lovells, involving individuals from their London office, indicating involvement of UK legal jurisdiction.
Industry
- Financial Services – The transaction involves major financial institutions, including Banca Agricola Popolare di Sicilia and J.P. Morgan, focusing on securitisation and financing.
- Legal Services – Legal advisory services are crucial in the structuring and execution of the securitisation, with Hogan Lovells providing expertise in both Italian and English law.
Financials
- €140 million – The senior loan amount provided by J.P. Morgan to the SPV.
- Up to €400 million – The potential total amount of financing from J.P. Morgan subject to further agreement.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Banca Agricola Popolare di Sicilia | Target Company | Company | An Italian bank that originated the securitisation for which a special vehicle was created. |
| J.P. Morgan | Lender | Company | Provided the SPV with a senior loan of approximately €140 million in the securitisation transaction. |
| Hogan Lovells | Legal Advisor | Company | Provided legal advisory services for the securitisation transaction to J.P. Morgan. |
| Banca Finint | Servicer and Corporate Servicer | Company | Performed multiple roles including as servicer, calculation agent, and facility agent in the transaction. |
| BNP Paribas | Transaction Bank and Paying Agent | Company | Acted as the transaction bank and paying agent in the securitisation transaction. |