A financial vehicle acquired receivables worth €262.5 mln related to loans granted by one of the top five banks in Romania, which it turned into three bonds of €87.5 mln each, sold to two other banks through a private placement, according to sources close to the transaction.
Securitization is defined as the process of gathering a group of debt obligations into a pool, and then dividing that pool into portions that can be sold as securities. These securities are traded for prices different from their nominal value, lower if the risk of regaining the nominal value increases. In Romania, these transactions can be made at a value of up to 90 percent lower than their nominal value.
