The value of collateral held for Customer loans at the end of 2020 amounted to PLN 2,649,256 thousand. Detailed information on collateral held is included in Note 55.2. of the Stand-alone Financial Statements of BNP Paribas Bank Polska S.A. for the 12-month period ended 31 December 2020.
In December 2017, the Bank performed a securitization transaction of the portfolio of cash and car loans. The transaction is a traditional securitization involving the transfer of ownership of the securitized receivables to SPV (BGŻ Poland ABS1 DAC based in Ireland). The revolving period is 24 months. Transaction is subject to amortisation since January 2020.
As a result of securitization, the Bank obtained financing in exchange for the transfer of rights to future cash flows resulting from the securitized loan portfolio in a value of PLN 2,300,471 thousand as of 22 November 2017 (the cut-off date). The maximum deadline for full redemption of bonds and repayment of the loan is 27 April 2032.
SPV issued bonds with a total value of PLN 2,180,850 thousand on the basis of securitized assets, and received a loan of PLN 119,621 thousand, which were secured by a registered pledge on the rights to cash flows from securitized assets. As at the end of December 2020, the value of bonds and loans amounted to PLN 1,390,318 thousand.
The main benefit of the performed transaction is a positive impact on capital adequacy ratios and improvement of liquidity and diversification of financing sources.
In the light of the provisions of IFRS 9, the contractual terms of the securitization do not fulfil the conditions for derecognition of securitized assets. In connection with the above, the Bank recognizes securitized assets in “Loans and advances to Customers” as at 31 December 2020 at net value of PLN 1,393,049 thousand.
The Bank acts as a servicer in the transaction.
The transaction is affected by factors related to the effects of the coronavirus epidemic. On the one hand, the value of flows and future flows in the transaction are affected by the deferrals of credit instalments granted by the Bank since 19 March 2020 in order to mitigate possible negative effects related to the coronavirus pandemic, and currently in particular those resulting from the Act of 19 June 2020 on interest rate subsidies on bank loans granted to entrepreneurs affected by COVID-19 and simplified procedure for approval of the agreement in connection with COVID-19.
On the other hand, the decisions of the Monetary Policy Council to reduce the NBP base interest rates, in particular the reference rate to 0.1% on 29 May 2020, which resulted in a reduction of the maximum interest rate on loans and advances and a decrease in the market WIBOR rates also have an impact.
At present, it is not possible for the Bank to precisely estimate the impact of the coronavirus pandemic on this transaction, in particular in relation to a possible long-term deterioration of borrowers’ situation.