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Whitecase
Full Credential Description
Global law firm White Case LLP advised Avida Finans AB (Avida) on its first synthetic securitisation transaction, valued at SEK 2.8 billion, in compliance with EU regulations on simple, transparent, and standardised securitisations (STS). Avida, a credit market company based in Stockholm that specializes in consumer and SME financing, faced the challenge of managing significant credit risk associated with its portfolio of consumer loans. The tailored solution involved the transfer of this credit risk through the placement of a mezzanine tranche in the form of credit linked notes with private investors. This strategic move was aimed at hedging against unexpected losses in the reference portfolio, which consists of consumer loans totaling up to SEK 2.8 billion. By achieving the necessary transfer of credit risk, Avida was able to free up risk-weighted assets, thereby strengthening its balance sheet and enhancing its capacity to support consumers across the Nordics. The transaction was arranged with the assistance of Revel Partners, who acted as financial advisers to Avida. The White Case team, led by partner Dennis Heuer, included experts from various locations, ensuring a comprehensive approach to the complex securitisation process. This milestone transaction not only mitigated Avidas risk exposure but also positioned the company for continued growth in the competitive credit market.