The transaction was marketed in May 2005 and has received solid subscription levels among international investors as well as wide distribution across Europe.
This German mortgage-backed bond is a “true securitization” or “true sale,” meaning GMAC has successfully navigated complicated German fiscal-, transfer- and data privacy legislation to repay bond investors with cash from its German mortgage portfolio. Typically, German structured finance deals use credit derivatives to transfer risk from the loan originators to the end investors.
“We are proud to bring the first true de-linked German securitization after years of only synthetic transactions,” says Ferdinand Veenman, Managing Director of GMAC-RFC’s Continental Capital Markets Group. “This gives institutional investors an opportunity to diversify their portfolio with first lien home loans originated in Germany, a real estate market that is well regarded for its stability.”
The loans backing the transaction have been exclusively originated in the last year by GMAC-RFC Bank GmbH, a division of GMAC-RFC, a leading U.S.-based real estate finance company.
“This transaction reflects the strong development of our business model in Germany since February 2004. Listening to the market and to our partners needs is the foundation of our success story,” says Dr. Matthias Bergmann, Country Head of GMAC-RFC Germany, “and it will be in the future.”
The bond proceeds are EUR 301.5 million (US$364.2 million). The bond, E-MAC DE 2005-I, is the third issue for GMAC-RFC under the E-MAC program in 2005, and the first for GMAC-RFC using collateral originated by its German origination platform, GMAC-RFC Bank GmbH.
