Vanquis Bank has established a securitisation program backed by a revolving portfolio of credit card receivables originated by Vanquis Bank Ltd (“Vanquis”) in the UK. Vanquis is a wholly owned subsidiary of Provident Financial plc (“PFG”). The notes are to be held internally as an additional liquidity contingency option initially, enhancing the Bank’s ability to diversify its sources of funding. The Bank remains primarily retail deposit funded.
Today’s retained issuance from Oban Cards 2021-1 plc represents the first term ABS from Vanquis. The Series 2021-1 transaction will issue two classes of notes with an aggregate principal amount of £453m. Credit enhancement on the Class A notes consists of i) subordination and ii) excess spread generated by the pool of credit card receivables. The transaction has a liquidity reserve of approximately £10m at inception and includes a minimum transferor interest of 0.75%. The Oban Cards 2021-1 transaction has been rated (AAAsf/Aaa(sf)/AAAsf) by Fitch Ratings, Kroll Bond Rating Agency and Standard & Poor’s. The bonds are listed on the London Stock Exchange.
Analysts and shareholders:
Owen Jones, Head of Investor Relations