A&O Shearman advises Hyundai Italy on a new cash SRT securitization

The securitization was structured in compliance with the simplicity, transparency, and standardization (STS) requirements set out under European regulations (Regulation (EU) 2017/2402). Prime Collateralised Securities (PCS) EU SAS acted as third-party verifier of such requirements. The asset-backed securities of the transaction were issued by the special purpose vehicle Fulvia SPV S.r.l. The Class A1, A2, B, C, D and E notes were rated by DBRS and Fitch, listed on the Luxembourg Stock Exchange and placed on the market. The junior notes (Class Z) were neither rated nor listed.

A&O Shearman advised Hyundai Italy, acting as drafting counsel, with a team led by partner Pietro Bellone and senior associate Martina Gullino, supported by trainee Anna Zanolli. Senior associate Giovanni Chiarli advised on hedging aspects and counsel Elia Ferdinando Clarizia provided assistance in relation to tax matters.

Pietro Bellone, partner, commented: “Hyundai Italy's new transaction confirms the increasingly prominent role of cash securitizations with significant risk transfer purposes in the capital markets. These structures, which combine liquidity objectives and capital optimization, require a deep understanding of the constantly evolving regulatory framework and its implications for operators in the banking and financial sector.”