Sector developments and company hires

AMR auction debut
The first-ever CLO applicable margin reset executed online – via KopenTech’s auction platform - saw all five tranches of TCW 2019-1 CLO refinanced successfully. The coupon of the US$240m triple-A rated tranche was reset to 107bp, from a spread of 144bp when the transaction initially closed.

Receivables ABS prepped
Gedesco Finance and Toro Finance are in the market with Gedesco Trade Receivables 2020-1, a revolving securitisation backed by factoring, promissory note and short-term loan receivables extended to enterprises and self-employed individuals located in Spain. The provisional portfolio comprises 9,302 contracts amounting to €357.7m, with the top industry sector being construction and building. The top direct debtor represents 4.59% of the portfolio and the top 20 represent 43.6%, according to Moody’s.

Solar alliance
Schneider Electric Solar Spain and Qbera Capital have entered into a strategic alliance to support solar energy growth across selected frontier and emerging markets. The alliance provides corporates with a one-stop solution that integrates technical, financing, digital and equipment solutions, with the aim of facilitating clean energy transition. One of the biggest roadblocks in green energy deployment is the lack of aligned advisory, technology and financing options. The first round of projects of 15MW will be rolled out across Mali, Ghana and Burkina Faso. Additional deployments of over 60MW will target a further six countries.

Volcker Rule roll-back
The CFTC, FDIC, OCC, SEC and US Fed have approved a proposed rule to revise the ‘covered funds’ provisions of the Volcker Rule. The notice of proposed rulemaking (NPR) would: permit the activities of qualifying foreign excluded funds; revise the exclusions from the definition of covered fund for foreign public funds, loan securitisations and small business investment companies; adopt new exclusions for credit funds, qualifying venture capital funds, family wealth management vehicles and customer facilitation vehicles; permit certain transactions that could otherwise be prohibited under 12 CFR 44.14; revise the definition of ‘ownership interest’ for Volcker Rule purposes; and provide that certain investments made in parallel with a covered fund, as well as certain restricted profit interests held by an employee or director need not be included in a banking entity’s calculation of its ownership interest in the covered fund. Comments must be received by 1 April.