"Thanks to Accola and Redbridge’s expertise and efficiency, NGE was able to expand its securitisation programme to SADE at improved financial conditions and within a tight timeframe, allowing savings on the cost of the bridge-to-securitisation facility. "
Engagement overview
Background
- Existing €250m trade receivables securitisation programme funded via three distinct ABCP conduits
- Acquisition of SADE by NGE
Engagement
- Extend NGE’s securitisation programme to SADE
Objectives
- Add SADE to the programme as a new seller
- Maximise the quantum of funding available
- Minimise changes to the existing transaction structure and documentation
- Optimise funding costs
- Expedite execution to reduce the cost of the bridge loan
- Have the principle of debit flows accepted on special purpose accounts (CAS), pending Sade’s integration into NGE’s treasury management
- Preserve NGE’s strong relationship with its banks, whilst fostering a level of competition
Results
- Sade included as new seller, not only of trade receivables, but also of unbilled receivables
- Programme size increased to €430m
- Programme cost reduced by 20 bps
- Project ended one month in advance
- Debit flows accepted on the CAS
- New lender added to the programme
Methodology
- Data collection on SADE’s trade receivables portfolio
- Several rounds of RFP submitted to the participating banks
- Re-negotiation of programme conditions including CAS, margins, volume
- Documentation review
Value added by Redbridge
- Expert knowledge of securitisation
- Credibility with the parties involved (banks and legal counsels).
- Agile project management
- Excellent time keeping: the project was finalised one month in advance of the initial target, and required only 3 months from beginning to end.