Prime Collateralised Securities

March 26, 2013

An Irish SPV (Bilkreditt 3 Limited) recently issued debt securities as part of the first ever securitisation to be awarded the new Prime Collateralised Securities (PCS) quality label. The PCS initiative was launched in June 2012 and is an industry-led, non-profit project to develop a label for high quality securitisations which meet best practice in terms of quality, transparency, simplicity, and standardisation. PCS announced that:

“The award marks the beginning of a new era for European securitisation : an era where the increasingly understood need for a strong securitisation market to fund the real economy is balanced with the imperative to maintain a European market that is safe, strong and transparent. We are proud that this first label has been awarded to a transaction originated by Santander whose commitment both to the PCS initiative and to a strong European securitisation market is unwavering.”

Further, the Irish Stock Exchange (ISE) has been appointed as one of the screening partners in the new European PCS initiative, which is designed to provide the benchmark standard for the asset backed securities market. The ISE will check documentation relevant to the screening process, along with two other partners. The PCS label will then be awarded to asset-backed securities that comply with published standards that are indicative of simplicity, asset quality and transparency and reflect some of the best practices available in the European securitisation market.

Deirdre Somers, chief executive of the ISE, said that the PCS initiative will “provide a significant boost to Europe’s securitisation market, which is so important to fund economic growth across the European Union”.

The move has been welcomed by the industry.

“The PCS initiative is a very positive and welcome initiative to drive quality, transparency and standardisation to the securitisation market. The issuance of the first PCS securities by an Irish company along with the appointment of the ISE puts Ireland very much to the front in delivering and driving these requirements,” said Gary Palmer, chief executive of the Irish Debt Securities Association.

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