Avis, a leading car rental company in Greece, has secured 130 million euros in funding for the expansion of its fleet of electric and hybrid cars.
The company has announced that it secured 130 million euros with an average interest rate of under 1.4 percent through an issuance covered by three international organizations as follows:
• the European Investment Fund (EIF) with 43 million euros,
• the European Bank for Reconstruction and Development (EBRD) with 37 million euros and,
• an investor from The Netherlands with 50 million euros guaranteed by the EIF.
The transaction is an important milestone for the Greek securitization market as it is the largest issuance by a non-bank originator and the first auto lease asset-backed security (ABS) transaction in the country to have a sustainable and green element.
“We have achieved this important transaction on exceptional terms despite these difficult times… A transaction covered exclusively by international organizations, such as the EIF and the EBRD, who showed confidence in Avis’ ability to grow sustainably, with respect to the environment, society, and Greece’s effort to recover from the crisis,” Avis CEO Andreas Taprantzis said.
This is the first securitisation since 2010 in Greece that has achieved an investment grade rating by two major rating agencies, S&P Global Ratings Europe Limited and Fitch Ratings Limited, with the senior notes being rated BBB+.
“This is the largest asset-backed security (ABS) transaction in the Greek private sector and confirms both the high quality of investment programs in Greece as well as investor confidence. This milestone was achieved thanks to the excellent cooperation between Greek and international financial partners,” said EIB Vice President Christian Kettel Thomsen.
Citi and Piraeus Bank S.A. acted as the joint lead managers and arrangers of the transaction.