Another giant leasing securitisation in Italy, originated by Fin-Eco Leasing SpA

EIF is pleased to announce that it has set another giant leasing securitisation in Italy, F-E Green. Originator of the securitised portfolio, which totals some EUR 1.45bn, is Fin-Eco Leasing SpA, part of the Fineco Group and one of the largest leasing operators in Italy.

Luxembourg, 1 July 2004 - The increased number and volume of deals such as F-E Green and the Intesa Lease deal set by EIF earlier this year, are paving the way for greater availability of long-term lease finance for Italian SMEs. Both deals are the biggest that have ever been set by EIF in Italy, and are certain to have a positive impact on the Italian lease industry.

Under the terms of the F-E Green deal, EIF provides a EUR 108.5m guarantee for the Class B notes of an Italian securitisation transaction of lease receivables to SMEs, covering any shortfalls in interest and principal due to the Class B noteholders. The notes are issued by F-E Green and arranged by MCC S.p.A. (Capitalia Gruppo Bancario). The securitised portfolio consists of three sub-pools: real estate, vehicles and equipment leases, the largest being the real estate sub-pool, representing approximately 64% of the total. There are 2 classes of rated notes: the Class A notes, rated AAA/Aaa/AAA (Fitch/Moody's/S&P) thanks to subordination, and the Class B notes, rated AAA/Aaa/AAA (Fitch/Moody's/S&P) thanks to the EIF wrap.

This securitisation deal represents a first opportunity for EIF to cooperate with Fin-Eco Leasing, ranked 5th in terms of volumes originated in the Italian leasing market with no previous relationship with EIF. According to Alessandro Tappi, Head of Guarantees & Securitisation at EIF, this transaction, structured and executed in close cooperation with the Capitalia Group, is another very positive example of EIF's cooperation with its private shareholders.