PORTUGAL Law and Practice Contributed by: Benedita Aires and Orlando Vogler Guiné, VdA
VdA Rua Dom Luís I 28 1200-151 Lisboa Portugal Tel: +351 213 113 400 Email: vieiradealmeida@vda.pt Web: www.vda.pt
1. Specific Financial Asset Types 1.1 Common Financial Assets In recent years, the most common securitised performing assets among financial institutions have been: • mortgage loans (both retained and market deals); • commercial mortgage loans; • consumer loans (secure and unsecured, including auto loans); and • SME loans. For non-financial institutions, electricity receiva - bles (tariff deficits and the like) have been the most commonly securitised asset, along with highway toll receivables, tax and social security credits and TV broadcasting rights receivables. In the non-performing loan (NPL) segment, the most significant assets have been secured loans from banks (in particular, non-performing mort - gage loans), without prejudice to unsecured loan transactions. This market segment has been very active over the years and banks have significant - ly reduced their stock of NPLs. This momentum is expected to continue, particularly considering the high interest rates across Europe and Portu - gal and the potential increase of the NPL ratio. There has recently been a trend for potential
unlikely to pay (UTP) receivables transactions, which is a new subfield of transactions. As the sustainable finance trend progresses swiftly, sustainable securitisation is expected to grow, noting that the first Iberian green RMBS was originated and issued out of Portugal in 2020. 1.2 Structures Relating to Financial Assets The structure and documentation package are essentially the same regardless of the asset class, with the relevant adjustments dictated by the type of assets. 1.3 Applicable Laws and Regulations The applicable legal framework is the same regardless of the asset class. 1.4 Special Purpose Entity (SPE) Jurisdiction Portuguese regulated securitisation companies (multi-issue SPEs) known as STCs are used for cash securitisation (please see 6.3 Transfer of Financial Assets ). Where an SPE is used in syn - thetic securitisations, it is typically incorporated in Ireland, which is a legal and tax-friendly juris - diction for SPEs.
333 CHAMBERS.COM
Powered by FlippingBook