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Refinancing EuroPACE loans in the European Fixed Income Market

2020

Using as benchmark the ABS (Asset Backed Securities) Green Bonds issued in US PACE programs, this document will focus on EU regulation and standards (STS-Simple, Transparent & Standardised) to draft the EuroPACE securitisation protocols to aggregate and re-finance the EuroPACE financing pool. The loans have historically been refinanced via the issuance of asset-backed securities (ABS) secured on the loan receivables. PACE bonds have been issued, including commercial and residential renovation programmes. ABS are deals which aggregate a pool of loans, leases, or similar contractual receivables to a deal size big enough to justify the transaction costs of a bond. The process of creating ABS is known as securitisation. US lenders have a preference for securitisation of originated debt as it allows them to operate with smaller balance sheets than their European counterparts. Warehouse structures are commonly used to aggregate loans and this approach has been adopted in the US PACE model.

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Refinancing EuroPACE loans in the European Fixed Income Market

Using as benchmark the ABS (Asset Backed Securities) Green Bonds issued in US PACE programs, this document will focus on EU regulation and standards (STS-Simple, Transparent & Standardised) to draft the EuroPACE securitisation protocols to aggregate and re-finance the EuroPACE financing pool. The loans have historically been refinanced via the issuance of asset-backed securities (ABS) secured on the loan receivables. PACE bonds have been issued, including commercial and residential renovation programmes. ABS are deals which aggregate a pool of loans, leases, or similar contractual receivables to a deal size big enough to justify the transaction costs of a bond. The process of creating ABS is known as securitisation. US lenders have a preference for securitisation of originated debt as it allows them to operate with smaller balance sheets than their European counterparts. Warehouse structures are commonly used to aggregate loans and this approach has been adopted in the US PACE model.

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Refinancing EuroPACE loans in the European Fixed Income Market

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