In December 2017, the Group performed a securitization transaction on the portfolio of cash and car loans. The transaction is a traditional securitization involving the transfer of ownership of the securitized receivables to SPV (BGŻ Poland ABS1 DAC based in Ireland). The revolving period is 24 months.
SPV issued bonds with a total value of PLN 2,180,850 thousand on the basis of securitized assets and received a loan of PLN 119,621 thousand, which was secured by a registered pledge on the rights to cash flows from securitized assets.
As a result of securitization, the Group obtained financing in return for the transfer of rights to future cash flows resulting from the securitized loan portfolio in the amount of PLN 2,300,471 thousand as at 22 November 2017 (cut-off). The maximum deadline for full redemption of bonds and repayment of the loan is 27 April 2032.
The main benefit of the performed transaction is a positive impact on capital adequacy ratios and improvement of liquidity and diversification of financing sources.
In the light of the provisions of IAS 39 and IFRS 9, the contractual terms of the securitization do not fulfil the conditions for derecognition of securitized assets. In connection with the above, the Bank recognizes securitized assets in “Loans and advances to customers” as at 31 December 2018 at net value of PLN 2,247,024 thousand.
The Group acts as a servicing entity in the transaction.
Balance sheet values and fair values of financial assets covered by securitization and related liabilities:
|
31.12.2019 |
31.12.2018 |
31.12.2019 |
31.12.2018 |
|
Book value |
Fair value* |
| Assets |
2,247,024 |
2,150,316 |
2,130,777 |
2,106,646 |
| Liabilities |
2,298,573 |
2,298,995 |
2,298,573 |
2,298,995 |
* The fair value of assets and liabilities related to securitization in 2017 is equal to the carrying amount due to the insignificance of the difference caused by the short period from the conclusion date of the securitization transaction.
