EU106 million collaterlised loan obligation (CLO) from KfW was the second
to take advantage of KfW's Promise SPV.
Programme for Mittelstand (hence Promise) structure allows banks
to transfer risk by packaging loans they have made to German medium sized
businesses into one CLO that is then supported by KfW.
assets for this deal were Mittelstand loans from Hypovereinsbank and Vereins-und
Westbank with promotion being provided by KfW.
offer, under the name of Promise-A-2000-1 Ireland was made up of five tiers
of assets, ranging from a Class A EU40 million triple-A rated portion down
to a high yield EU11 million high yield slice.
first company to take advantage of this programme was IKB Deutsche Industriebank,
which issued a EU2.4475 billion CLO (tranche total size EU212.5 million)
earlier this month.
70 per cent of jobs are provided by medium sized business known as the
Mittelstand sector in Germany and KfW is a major lender to these companies.