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EDF launches its first securitisation with Electra 1

  • 28.10.1999
EDF mandated Paribas for the launch of close to EUR 1 billion housing loan securitisation. Electra 1, a Fonds Commun de Créances (the FCC is the usual French law securitisation SPV) was established for the acquisition of receivables related to a portfolio of housing loans jointly extended by EDF and Gaz de France to their employees as part of their social benefit policy. Electra 1 will acquire EDF's share ownership of the loan receivables.

The portfolio consists of more than 52,000 housing fixed rate loans amortising in constant monthly instalments. The loans have a 20 year term at maximum. Given the loans' weighted average rate (5,34 %), they will be acquired by FCC Electra 1 at a discount to their nominal value.

The FCC is issuing two types of units, senior units and subordinated units:

Senior units are split into four classes, A1, A2, A3 and A4, totalling EUR 958.7 million. Each class has been rated AAA by Fitch-IBCA and Aaa by Moody's. The nominal amounts of Class A1, A2, A3 and A4 units are respectively EUR 422.5 mn, EUR 150 mn, EUR 150 mn and EUR 205 mn. Class A1 will amortise quarterly and bear a coupon at a 0.28% spread over Euribor 3 months. Class A1 units have an expected maturity of 4.5 years and expected average life of 2.2 years. Class A2, A3 and A4 units are structured as bullets and are expected to be repaid in full in November 2006, November 2009 and November 2012 respectively. These units bear a fixed interest rate and were priced respectively at 0.78%, 0.65% and 0.88% above the interpolated OAT curve. They pay a semi-annual coupon in arrears, set at respectively 5.70%, 5.90 % and 6.20%. All senior units are offered through public placement.

Subordinated units are split into two classes: Class B subordinated units and Class C residual units.
Class B units, totalling EUR 31.2 million, pay a semi-annual coupon of 6M Euribor + 0.65%. They are expected to be redeemed in three pay-downs on Class A2, A3 and A4 expected maturity dates. The Class B units have an expected average life of 8.8 years. Class B units were assigned a rating of A by Fitch-IBCA and Aa3 by Moody's. The EUR 10,000 Class C units are entirely subscribed by EDF.

This transaction was arranged by Paribas. Paribas lead-manages the syndicate of banks responsible for placing the Class A units and is sole lead manager for the Class B units.

The management of the FCC's flow of funds will be provided by France Titrisation, a management company jointly owned by Paribas, Crédit Commercial de France, Caisse Centrale de Crédit Mutuel and Barclays Bank. Acting as custodian, Paribas is responsible for the custody of the FCC's assets and controls the management company.

This first securitisation transaction highlights EDF's commitment to pursue its external growth strategy in the new pan-European electricity market, while maintaining a strong financial structure and especially comply with its debt reduction objectives. Other similar transactions could follow depending on the company's financial needs. Through active management of its balance sheet, EDF is freeing up resources which can be earmarked to the company's external growth.
Press contact(s)
Contacts :

Paribas Securitisation : Denis Wallerich - 33 1 42 98 74 72 / Jérôme Bire - 33 1 42 98 75 79
Paribas contact presse : Jérôme Fourré - 33 1 42 98 15 91
EDF contact presse : Christine Collaert - 33 1 40 42 62 68