UCI Portugal Launches €385-Million RMBS Fund

11 May 2020 The Portuguese arm of UCI (Unión de Créditos Inmobiliarios), an equally owned joint venture by BNP Paribas Group and Banco Santander, has launched its first fund with residential mortgage-backed securities (RMBS) in Portugal. The €385-million fund is called RMBS Green Belém 1.

This deal marks the first such operation in Portugal since 2008.  The fund’s assets consist of mortgage loans generated between 2009 and 2019 for 4,000 families with a current LTV (loan-to-value) of 60.6%. The portfolio’s assets are primarily concentrated in Lisbon (55.4%).

The securitization includes an option for UCI to wind up the fund at the end of the fifth year, the duration initially planned for the operation. DBRS Ratings and Fitch Ratings have assigned RMBS Green Belém 1 AA high/AA ratings, respectively. The ratings are the highest level possible in Portugal for this type of operation, six levels above the country’s sovereign rating.

Original Story: Jornal Económico – Maria Teixeira Alves

Translation/Summary: Richard D. Turner