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In what has been a lean few years for the Residential Mortgage Backed Securitisation (RMBS) scene, BNP Paribas has successfully amended and restructured its FCT Opéra 2014 fund in a EUR 8m securitisation transaction.

The deal, which involved the issuance of home loans-backed fixed rate notes, was one of the major RMBS issuances on the French market in 2016 and one of the very few of its kind in the last five years.

The securitisation fund had initially issued existing class A and class B home loans-backed fixed rate notes. The purpose of the amendment was to open a new revolving period for the fund to purchase receivables and issue new class A and class B notes to be assimilated into the existing notes.

CMS France advised BNP Paribas on the innovative transaction.

The technical challenge was to reopen the revolving period with different assets and to reissue new classes of notes and assimilate them into the existing ones, while keeping the same rating and financial basis.
Grégory Benteux, Partner, CMS Paris

“We decided to work with the existing structure, as creating a new one meant that we would have needed to go through a new regulatory process, in particular with the ECB. This would have slowed down the transaction significantly.”

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