UCI launches first green RMBS in Spain

Cuatrecasas has advised Unión de Créditos Inmobiliarios (UCI) on closing the first residential mortgage-backed security (RMBS) transaction in Spain that adheres to the ICMA Green Bond Principles and focuses on green project financing. The issue prospectus was registered with the Spanish Securities and Exchange Commission.

UCI, as the originator, has pledged to allocate the class A and B net funds to green projects, in a five-year period. The financing will originate sustainable green loans to individuals and homeowners’ associations investing in building renovation. The goal is to improve energy efficiency; the construction and acquisition of homes with high standards of energy efficiency; and the installation, maintenance and repair of efficient air-conditioning units.

The securitization vehicle, named RMBS Green Prado XI, has an open-ended asset of up to €490 million and has issued four classes of bonds. Class A, which secured a triple-A credit rating, together with class B, have been designated as “Secured Green Standard Bonds” in line with the ICMA Green Bond Principles.

Cuatrecasas has a specialist team in the legal structuring required to qualify the issuance of bonds, notes and debt securities as green under the ICMA standards or the future EU Green Bond Standard. The team advising UCI on this particular transaction was led by partner Miguel Cruz Ropero, who worked together with associates Jaime Juan Rodríguez, Jerónimo Poza and Iván Wesolowski.