Unfunded protection has historically been focused on capital relief trade senior mezzanine exposures, but Bank of Ireland Group (BOIG) debuted a pari passu unfunded tranche alongside a funded junior mezzanine tranche in its €265m Vale 2019-1 deal from December 2019.
The transaction also facilitated the refinancing of 2016’s Grattan Securities, which had reached the end of its replenishment period. As such, this ground-breaking transaction is awarded SCI’s CRT Innovation of the Year.
Vale 2019-1 references a €2bn portfolio of predominantly Irish and UK corporate banking loans. Bank of Ireland and Mizuho were joint arrangers on the deal, with Mizuho acting as sole lead manager.