PrimaDollar beats Brexit deadline
PrimaDollar has completed the certification of its main funding program, “Exporter Finance”, as STS compliant under the European securitisation regulations, EU2017/2042, just 12 hours before the UK leaves the European Union.
STS compliance is the new gold standard for securitisations, to date achieved by some of the largest originators in the capital markets (such as VW, Peugeot, Santander, and Bank of Scotland). PrimaDollar’s program is also one of the first globally to achieve this high standard for a non-ABCP financing of trade receivables.
STS compliance means that the Exporter Finance program meets the requirements for “Simplicity, Transparency and Standardisation” that have been laid down by the regulators.
Tim Nicolle, Group CEO of PrimaDollar said:
“STS compliance is very important to our business. It means that our European and UK bank investors can reduce the amount of regulatory capital allocated against finance provided to us; this leads directly to lower funding costs that we can pass on to our clients. We are already the lowest cost provider of non-bank trade finance globally, and this will further cement our market-leading position.
There is no certainty available as to how the regulatory landscape will evolve post-Brexit. This meant that we had to accelerate our plans to deliver the certification. Now in place, the certification will continue to benefit our lenders across the EU, as well as in the UK going forward.”
STS compliance was achieved with the support of NIBC Bank NV, a leading European funder of fintech and alternative credit platforms, international legal counsel Reed Smith, and was independently verified by PCS UK Ltd, a verification agent authorised by the Financial Conduct Authority in the UK.
There are numerous requirements for a securitisation to achieve STS compliant status. Criteria regarding simplicity include stipulations on underwriting standards, homogeneity, and credit quality of the underlying collateral. Standardization requirements include early amortization triggers, performance trigger-based reversion to sequential paydown, and "appropriate" mitigation of interest rate and currency risks. Transparency requirements include the provision of a liability cash flow model, comprehensive historical performance data, and the maintenance of a data repository for investors.
About PrimaDollar
PrimaDollar is a UK-based trade finance fintech with clients in over 30 countries, operating from its office network across Asia, Europe and the US. PrimaDollar provides trade finance directly to clients via its Exporter Finance program. PrimaDollar also provides trade finance through local banks, logistics providers and marketplaces who can embed trade finance digitally into their online platforms using PrimaDollar’s Trade Finance Toolkit.
Contact: tim.nicolle@primadollar.com
www.primadollar.com
Tel: +44-1483-568040 / +44-7976-200249
About NIBC Bank
NIBC Bank N.V. is a commercial bank in the Netherlands offering corporate and retail banking products and services. Its corporate banking activities range from advising, structuring, financing and co-investing across debt and equity in Northwest Europe with a focus on the Netherlands, Germany and the UK. Operating through NIBC Bank Deutschland AG, NIBC is a leading financier of alternative credit, leasing and fintech platforms operating across the wider European marketplace.
Contact:
Jens Lindner Tel: +49 (0) 69 5050 655 59
E: jens.lindner@nibc.com
Nils Schaffner Tel: +44 (0) 207 375 7718
E: nils.schaffner@nibc.com
About PCS UK Ltd
PCS UK Ltd is authorised under section 28 of the STS Regulation by the Financial Conduct Authority in the UK (alongside PCS EU, authorised in France by the French Autorité des Marchés Financiers) to act as a third party verification agent in respect of STS compliance. PCS UK and PCS EU are not-for-profit organisations and include some of the most experienced securitisation professionals working in the markets today within their teams.
Contact:
Ian Bell Tel: +44 (0) 20 3440 3721
Tel: +33 (1) 86 26 18 38 E: ian.bell@pcsmarket.org
About Reed Smith
Reed Smith is a dynamic international law firm dedicated to helping clients move their businesses forward. Our belief is that by delivering smarter and more creative legal services, we will not only enrich our clients’ experiences with us, but also support them in achieving their business goals. Our long-standing relationships, international outlook, and collaborative structure make us the go-to partner for the speedy resolution of complex disputes, transactions, and regulatory matters. For further information, please visit reedsmith.com.
Contact:
Nick Stainthorpe Tel: +44 (0)203116 2939
Tel: +44 (0)7813 082463 E: nstainthorpe@reedsmith.com