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Insuring export business as bank

Securitisation Guarantee

News: July 2011

With effect from 1st July 2011 the Federal Government offers an improved Securitisation Guarantee, which is even more attractive for investors and financiers. The improvements result from the fact that

  • the provider of refinancing funds now obtains an independent legal claim
  • the claim under the Securitisation Guarantee is clearly worded
  • no reference is made to the General Conditions of Buyer Credit Guarantees
  • any legal defects of the assignment of the claim arising from the buyer credit that may exist do not impair the validity of the Securitisation Guarantee

Besides, the following is also new:

  • the general regulations for the granting of a guarantee, which are not relevant for the provider of refinancing funds, have been fixed in a separate contract for the provision of guarantees
  • the policyholder’s obligation to indemnify is defined more clearly

See also AGA-Report Nr. 205 (German version only)

Product at a glance

A Securitisation Guarantee is a solution for a bank in favour of which the Federal Government has already granted a Buyer Credit Guarantee to obtain refinancing at favourable terms on the capital market via a special purpose vehicle (SPV) or a mortgage bank.

Target group

  • as policyholders
    • German banks
    • German branch offices of foreign banks
    • Foreign banks (under certain conditions)
  • as beneficiary (refinancing institution)
    • German or foreign banks
    • Other refinancing institutions (e.g. special purpose companies) under certain conditions

Payment terms of the covered transactions

Depending on the Buyer Credit Guarantee on which it is based (normally medium/long-term)

Special features

In favour of the refinancing institution which acquires the covered debt, the Federal Government waives

  • the waiting periods (guarantee is callable on first demand)
  • the uninsured portion (100 % of the covered amount receivable are indemnified)
  • the right to raise defences or objections on the basis of the General Conditions (unconditional claim to indemnify)

A Securitisation Guarantee is applied for in addition to a Buyer Credit Guarantee (the application can be submitted even if buyer credit cover already exists).

From the viewpoint of the beneficiary it is a 100 % guarantee callable on first demand; in the internal relationship between the Federal Government and the lending bank, the terms and conditions of Buyer Credit Guarantee remain applicable.

Premium

  • One-time premium dependent on the repayment term of the buyer credit and calculated as a percentage of the assigned amount of principal; normally there are no processing fees. (Exception: A Securitisation Guarantee is applied for only after buyer credit cover has been granted)
  • For a detailed calculation there is an interactive premium calculator available.

Uninsured portion

No uninsured portion for the beneficiary (refinancing institution)

For advice please contact

Ms Gertrud Jacobshagen: +49 (0) 40 / 88 34 - 91 62
email: info(at)exportkreditgarantien.de

Downloads

Product Information: Securitisation Guarantee (213 KB) German version (196 KB)

Standard contract Securitisation Guarantee (16.8 KB) German version (19.7 KB)
Standard contract (Pfandbrief) Securitisation Guarantee (17.8 KB) German version (20.3 KB)

Standard text Contract for the provision of a Securitisation Guarantee (71.2 KB) German version (32.3 KB)
Standard text Contract for the provision of a Securitisation Guarantee (Pfandbrief) (70.7 KB) German version (31.2 KB)

Application form Securitisation Guarantee (121 KB, German version only)
Application form Securitisation Guarantee (263 KB, German version only)

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