EIF sets its largest leasing securitisation ever, originated by Intesa Leasing (Italy)

EIF is pleased to announce that its first securitisation of the year 2004, Intesa Lease Sec. Srl, is one of the largest leasing securitisation deals it ever set in Italy. Originator of the securitised portfolio, which totals some EUR 1.495bn, is Intesa Leasing, the leasing subsidiary of Banca Intesa.

Luxembourg, 26 February 2004 - Taking into account its considerable size, the closing of this latest transaction by EIF is certain to have a positive impact on the Italian leasing market. Under the terms of the deal, EIF provides a EUR 83.8m guarantee for a mezzanine tranche of an Italian securitisation transaction of lease receivables to SMEs issued by Intesa Lease Sec. Srl and arranged by Banca Intesa, Milan. The portfolio consists of leases to Small and Medium-sized Enterprises operating in northern Italy. There are 4 classes of rated notes: the Class A1, A2, and A3 notes, rated Aaa/AAA/AAA (Moody's/S&P/Fitch) thanks to subordination, and the Class B mezzanine notes, rated Aaa/AAA/AAA thanks to the EIF wrap.

This securitisation deal gives EIF high visibility in the market because all the market players have carefully reviewed this deal. According to Alessandro Tappi, Head of Guarantees at EIF, this transaction represents a milestone in the development of the EIF's activity as a credit enhancer in the area of SME finance securitisation in Europe. Other highlights: this is the first securitisation EIF is involved in with Intesa Leasing; the first deal concluded following the recent confirmation by the Basel Committee of EIF's official status as a Multilateral Development Bank; the first wrap done by EIF in Italy with an official AAA rating; and finally, the largest mezzanine tranche ever taken by EIF.