SecurAsset, the Luxembourg domiciled special purpose vehicle (SPV) from BNP Paribas, has reported the outstanding aggregate amount of structured notes issued in different currencies amounted to a euro equivalent of €2,705m at the end of June 2018. There were new 22 compartments created in the course of the financial period ended June 30, 2018, according to the company.
The repayment value of the outstanding notes, recorded under the 'non-convertible loans' caption, stood at €2.7 billion while the performance in terms of net equalisation provisions - as reflected in the combined profit and loss account - for the first six months of 2018 amounts to €7.6m.
In Belgium, where the vast majority of SecurAsset products are distributed, the SPV issued 10 products worth €59.9m between January 1 and June 30, 2018, according to SRP data. The structures were marketed via BPost Bank, and split equally between products linked to the interest rate and products linked to a single index.
The SRP Belgian database registers 164 structured products issued via SecurAsset, with strike dates dating back to November 2011. Of these, 150 products - which are available via Argenta (26), BPost Bank (117), Crelan (two) and VDK Bank (five) - with combined sales of €1.2bn, are still live. More than ninety of the outstanding products were linked to equities including 76 structures linked to a single index. Of these, the iStoxx Europe Next Dividend Low Risk 50 (seen in 22 products), Solactive European Deep Value Select 50 (15), Ethical Europe Equity and Stoxx Global Select 100 EUR Index (six each), were the most frequently used.
Twenty-eight products were linked to the interest rate; a further 26 products were tied to a managed fund - including 15 products linked to M&G Optimal Income Fund; and four products were linked to a currency basket.
The best-selling SecurAsset product in Belgium was Maxi Plus Global Infrastructure which was distributed via Argenta and sold €39.6m during its subscription period. The product struck in January 2013 and is linked to a basket of 18 stocks taken from the BNP Paribas Global Infrastructure ER Index.
Apart from Belgium, the company has also issued structured notes in Italy and Poland, were there are 32 and 22 live products, respectively. However, no new products were issued via the vehicle during the first half of 2018 in these countries.
SecurAsset issues on a continuous basis notes and certificates out of segregated compartments under a €20bn secured note, warrant and certificate programme. The noteholders subscribing to these notes are entitled, on a limited recourse basis, to the assets held in the relevant compartment. Although almost any asset class can be used to back the notes issued under the programme, asset classes used so far cover equity and commodity indices. The company has no branches, does no research and developments and has no own shares acquired.
Click the link to read the full SecurAsset interim accounts as at June 30, 2018.
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