Financing of receivables portfolio
Flexibly manage liquidity and risks
The purchase of receivables or portfolios of receivables has been a proven mainstay of corporate refinancing for years.
BayernLB offers its medium and large corporate customers a program to finance portfolios of receivables via securitisation. Our "Corelux" purchase and refinance platform is an efficient way for customers, especially retail, industrial and leasing companies, to actively manage their liquidity risks and balance sheets. Financing by means of platforms like Corelux has been an established and recognised type of financing in Germany for over 25 years. Financing for our customers that is largely unaffected by changes in creditworthiness or ratings.
NEW for Mittelstand companies
- Standard contracts in the German language
- Lean, simple structures
- Easy, standardised processes
For large corporates
- Customised structures
- Extensive international experience
- Pan European and US transactions
BayernLB has been active in the securitisation market since the late 1990s. Transactions for clients are structured by experienced staff members in Munich and London with extensive know-how in securitisation. With an impressive track record of over 40 German and international securitisation transactions, BayernLB holds a strong position in the field.
Benefits of portfolio refinancing for our customers:
- Diversification of funding
- Attractive refinancing terms
- Long-term nature of the securitisation structure
- The securitisation structure can be flexibly adapted to the transaction volume
- Indirect access to capital markets
- Effective management tool for the credit risk of the portfolio
- Non-recourse - financing is primarily based on the creditworthiness of the portfolio
Which receivables can be purchased?
|BayernLB can finance the following types of receivables from its customers via the Corelux platform: |
- Accounts receivables
- Trade receivables
- Leasing receivables (especially movables leasing)
- Receivables from financing agreements
|The receivables can be due from: |
- Private individuals
- Public sector entities
The Corelux platform
Corelux is domiciled in Luxemburg and already complies with today's tougher regulatory requirements for securitisations. This puts the program at the forefront in this market segment. Purchases of receivables by Corelux are financed by issuing short-term commercial paper in Europe or the US. In addition, all of Corelux's liquidity requirements are provided by BayernLB.
In line with market practice, BayernLB guarantees to investors that the commercial paper will be repaid in full. Thus, investors also acquire a BayernLB risk, which is further secured by the purchased receivables portfolios.
The commercial paper is rated F1(sf) by Fitch and P1(sf) by Moody's.
True Sales Initiative
BayernLB is one of the 12 founding banks of True Sales International GmbH (TSI). Since 2004, TSI has worked to promote securitisations based on German law and using a standardised procedure agreed by all market participants. Additionally, it aims to create a brand name for German securitisation transactions that stands for high quality in terms of transparency, investor information and market making.
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