Cuatrecasas advises UCI on securitization of residential mortgages (RMBS PRADO VIII)

The lawyers at Cuatrecasas have advised Unión de Créditos Inmobiliarios (“UCI”) on the securitization of residential mortgages originating in Spain worth €480 million (RMBS Prado VIII). Banco Santander (Corporate & Investment Banking) and BNP Paribas placed the bonds. The securitization was classified as STS (simple, transparent and standardized) and one of its structural features is that it has an interest rate cap (ISDA subject to English law).

This funding, in which the European Investment Bank has invested in a single-tranche of €50 million, will help to grant new green and sustainable loans to individuals and condominiums that are investing in building renovations. Although the financing is mainly focused on building renovations, mortgage loans for buying homes meeting high energy-efficiency standards will also be eligible. The project will contribute to climate change mitigation, with energy savings estimated to be 57 GWh per year, which represents a CO2 emission reduction of 10, 269 tons per year.

The loans in this project will be in line with the criteria established by the European Mortgage Federation in the Energy efficient Mortgages Action Plan (EeMAP). Renovation operations should lead to at least a 30% improvement in the energy efficiency of the building, while financing for the purchase of new housing must have near-zero energy use. Both criteria are in line with the access requirements for the Energy Efficient Mortgage Label (EEM Label).

Miguel Cruz Ropero, Jaime Juan Rodríguez Lozano, Alfonso Peña Alvarado and Jerónimo Poza Anguís were on the legal team that advised UCI.