Allen & Overy advises on the first green auto loan securitisation in Europe
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It is the first public securitisation in Europe to contain only loans for electric and hybrid vehicles and was completed by Toyota Financial Services Italia.
Allen & Overy has advised on the first public securitisation of green auto loans in Europe completed by Toyota’s Italian subsidiary, Toyota Financial Services Italia (TFSI). The transaction is also the inaugural securitisation for TFSI.
The value of the transaction is approximately EUR540 million. The senior notes – rated by Fitch and Moody’s and listed on the ExtraMOT PRO segment of Borsa Italiana – have been placed with third party qualified investors. The junior notes have been underwritten by TFSI. The transaction has been structured in compliance with the European rules on simple, transparent and standardised securitisations.
Pietro Bellone, counsel of Italy Structured Finance team, commented: “It’s great to see that the first green auto ABS in Europe has successfully tapped the capital market. Although supply chain disruptions, spikes in battery and energy costs may affect near-term electric vehicles (EV)’ offer and demand, European automakers are investing in EV platforms and infrastructure to increase the proportion of zero-emissions car sales as the EU Commission tries to eliminate CO2 emissions by 2035 for new vehicles. The recourse to the securitisation as a source of funding is essential to achieve these objectives, hence we expect that the scale of the green auto ABS market will grow rapidly in the future”.
The A&O’s team advising TFSI was led by partner Stefano Sennhauser and counsel Pietro Bellone and comprised associates Chiara D’Andolfo and Pietro Milanesi. Partner Francesco Guelfi and counsel Elia Ferdinando Clarizia advised for tax-related aspects. A team of A&O lawyers based in Milan and London have also provided assistance in relation to the English law aspects.