MOVING FAR FROM RISK
NAVIGATING THE
Transforming assets into tradable securities, securitisation is a powerful tool that can benefit both businesses and investors, comprising a few clear steps.
Servicing Agreement.
Origination of Receivables
ORIGINATOR
Sale of Receivables
Purchase Price
ΒΟRROWER SPV
Purchase Price
Note Proceeds
Principal & Interests
NOTEHOLDERS
The process begins with selecting a pool of receivables or other income-generating assets, which form the foundation of the securities that will be created. The rate calculations assume the assessment of the transaction terms and the portfolio-specific characteristics with a rating agency methodology. The assessment output is the borrowing base that will define the level of the capital raised.
A Special Purpose Vehicle (SPV) is established to purchase and hold the selected assets. The SPV is a legal entity that raises funds for part of the total value of the receivables, using them as collateral.
The Οriginator (Seller) transfers the selected assets to the SPV, removing them from its balance sheet. This transfer is typically done through a sale or contribution, and it may be a one-off true sale or revolving.
Investors purchase the note issued by the SPV. These investors are mainly banks, institutional investors, or even individual ones. The capital raised from the sale of securities is used to pay the originator for the transferred assets.
Usually, collections derived from the portfolios are transferred to the remittance account of the SPV in an agreed time frame. Based on the agreement, the SPV returns the proceeds to the Originator within the agreed time frame after deducting the transaction costs (i.e., servicing fees, tickets, etc.).
The SPV administers and services the assets, managing defaults and any necessary legal or administrative tasks. It raises funds for part of the total value of the receivables, using them as collateral.
Depending on the transaction, there are two repayment phases. The first one, with a typical duration of two to three years, pays for the cost and interest rate of the transaction every month. Depending on the transaction, this period can be extended from two to three years. The second one includes capital repayment, with its duration varying between one to three years, depending on the initial agreement.
QUALCO INTELLIGENT FINANCE
Backed by our extensive know-how, proprietary technology, and AI backbone, we deliver diverse specialised solutions and services that align with each client's needs. Our service portfolio spans every facet of the securitisation process, guaranteeing that originators successfully navigate the complexities of their transactions
Analysing
Feasibility
Building Business Plan & Cash Flow Forecasts
Evaluating & Defining Eligible Receivables
Planning & Modelling of Transactions
Identifying Ideal Investors
Setting up the IT Infrastructure
Creating Data Warehouse
Portfolio Onboarding
Operational Controls
Setting up Receivables Servicing
Building a Comprehensive Investor Reporting Framework
OUR SUCCESS PLAYBOOK
Our expertise comes from engaging in two distinct energy receivables securitisation endeavours in Greece, partnered with esteemed global investors.
We maintain enduring relationships with international capital providers, ensuring a steady flow of financial support for your ventures.
Based on Qualco Group’s technology ecosystem, we offer a holistic approach to credit risk and receivables management. We harness proprietary, time-tested tech solutions, complete with tailored infrastructures, systems, and networks meticulously adapted to the specific requirements of each project.
Our adept team excels in analysing portfolios to optimise recoveries, crafting models to decipher customer behaviour, strategising and executing portfolio plans, managing an extensive network of partners, and devising comprehensive reporting structures.
For over 25 years, we’ve led financial tech innovation, evolving into a dynamic organisation reshaping credit management. Underpinned by our proprietary technology and an experienced team, we are rapidly expanding beyond our credit origins into new products and markets. Qualco Intelligent Finance is a member of Qualco Group.
