Ashurst advises DZ BANK on update and adjustment of €10bn ABCP conduit programme CORAL Capital sponsored by DZ BANK

Ashurst advised DZ BANK AG (DZ BANK) on the update and adjustment of the €10bn ABCP conduit programme CORAL Capital which is sponsored by DZ Bank, in particular with a view to the Securitisation Regulation and STS transactions.

Under the CORAL ABCP programme, the issuer CORAL Capital DAC issues commercial paper notes to professional capital markets investors with a maximum aggregate amount of €10bn. CORAL Capital DAC makes the proceedings available to various securitisation special purpose entities which acquire trade receivables, loan receivables and lease receivables from companies by way of 'true sale' and thus contribute to indirect capital market financing for predominantly German medium-sized mittelstands companies. The ABCP programme is sponsored by DZ Bank; DZ Bank also provides a so-called 'full support' liquidity facility. Deutsche Bank in London is acting as security trustee, account bank and agent. The notes are sold by Citigroup Global Markets Limited and DZ Bank as dealers. The CORAL ABCP programme has been extensively revised to meet the requirements of the Securitisation Regulation, including in particular so-called STS transactions, and to make other more general adjustments.

The Ashurst team led by partner Dr Martin Kaiser comprised counsel Dr Sahra Demirbilek, senior associate Stephan Lehnen and associate Maximilian Kamm (all Global Markets). London-based partner Jonathan Walsh (Global Markets) advised on English law aspects.

Ashurst's securitisation team specialises in True Sale transactions and advises especially on the securitisation of auto loans, auto leasing receivables, auto residual values and trade receivables. The team led by Dr Martin Kaiser advises originators, arrangers, investors and trustees on all aspects of asset-backed securities.