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March 28, 2019

DLL closes £306m UK equipment lease securitization

DLL has announced a equipment lease securitization transaction in the United Kingdom for £306m, the first for five years.

By Christopher Marchant

DLL has announced a equipment lease securitization transaction in the United Kingdom for £306m, the first UK asset backed security (ABS) transaction with equipment lease exposure in five years.

This is the first public ABS transaction issued by DLL in Europe. The transaction will be listed at the ISE (Irish Stock Exchange), and the notes are backed by a pool of UK equipment lease receivables originated by DLL’s UK branch, De Lage Landen Leasing.

The pool consists of hire purchase agreements, operational leases and financial leases, mainly in the agriculture and materials handling sectors. The transaction includes Class A floating rate notes of £306m rated AAA by both Fitch and Standard & Poor’s. The final book finished at £750m, an oversubscription of 2.5 times.

Marc Dierckx, DLL chief financial officer and member of the executive board, said: “We are very pleased with the huge interest shown in our notes, marking a successful debut for DLL in this asset class in Sterling ABS. Also, the fact that no less than 15 individual investors participated shows the wide acceptance of our transaction. We consider this an endorsement of investors and rating agencies of the best in class standards that we aimed to follow with this transaction.

“Our securitization transactions continue to be a part of DLL’s long-term growth strategy to diversify our funding base. Going forward, we intend to pursue further transactions and will look at other opportunities to complement our primary and major source of funding, which remains our parent, Rabobank.”

Last November DLL closed a 2018 securitisation transaction in the United States in excess of $1bn (€880m). This is the largest equipment finance securitisation in recent history in US markets.

Founded in 1969 and headquartered in Eindhoven, The Netherlands, DLL provides asset-based financial solutions in the agriculture, food, healthcare, clean technology, construction, transportation, industrial, document imaging and technology industries.

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