LONDON, July 9, 2012 /PRNewswire/ --
European DataWarehouse GmbH (ED) is pleased to announce today the successful completion of a private placement with fifteen key investors, consisting largely of global banks and institutions. The placement has been coordinated by Perella Weinberg Partners.
ED is a groundbreaking new company that was created with the support of the European Central Bank (ECB), acting as a catalyst in the market, and global investors (through the Market Group and ECB Technical Working Groups) to respond to the need for full disclosure for investors in asset-backed securities (ABS). As well as providing an open platform for all users to access ABS data, one of ED's key responsibilities will be to facilitate the reporting of loan-level data of ABS transactions which will become a binding criterion for the securities to be considered for eligibility in the Eurosystem collateral framework. The ABS loan-level data will need to meet the information requirements prescribed in the ECB loan-level templates which are available on the ECB website.
(The ECB templates are available at http://www.ecb.int/mopo/assets/loanlevel/transmission/html/index.en.html)
ED's completion, which will include an extensive testing and system integration before the ECB loan-level data requirements become binding, is envisaged towards the end of Q4 2012. Proceeds from the placement will be used to finalise the build-out of ED as well as to provide the business with ongoing working capital.
Fernando González, Chairman of the ECB Technical Working Group on the ABS Loan-level Initiative and Head of the Risk Strategy Section at the ECB, said:
Paul Burdell, Director of European DataWarehouse and CEO at LCM Partners, added:
"ED will be the key mechanism to access ABS loan-level information, helping investors and other market participants to gain an in depth understanding of the underlying assets for their required due diligence and stress tests. ED should also help improve liquidity in the ABS market as information and full disclosure about the underlying assets will help investors in their valuations, risk assessments and comparisons across multiple jurisdictions and multiple asset classes."
ED is planning several workshops to help issuers, investors and data providers interfacing with its systems. The reporting process will start with RMBS transactions and will then be extended to CMBS and SME securities shortly after. Auto loan, consumer finance and leasing ABS transactions for inclusion in the Eurosystem collateral framework will also be subject to ED's validation processes in due course.
ED's governance structure currently envisages a Supervisory Board and a pricing committee with the participation of the ECB and national central bank senior representatives as active observers.
ED's head office will be based in Frankfurt.
Notes to the editors:
In December 2010, the Governing Council of the ECB announced its intention to establish loan-by-loan data requirements for ABS in the Eurosystem collateral framework, with the aim of improving transparency and helping to restore investor confidence in the European securitisation markets (the ABS Loan-level Initiative).
As part of the initiative, the ECB in April 2011, encouraged the creation of a data warehouse for the processing, verification and transmission of ABS loan-level data by an independent constructor external to the Eurosystem. At the same time, former ECB President Jean-Claude Trichet invited market participants to lend their support to this important initiative.
An independent group of nine leading ABS investors and originators from across Europe called the "Market Group" was formed to oversee and advise in relation to the RfI and RfP processes to select the advisors to build ED.
ED will ensure that loan-level data is made available to market participants to increase disclosure in relation to, and facilitate the risk assessment of, existing and future ABS transactions. Processes and software systems will be put in place that allow ABS originators to submit loan-level data to ED electronically, and the loan-level data will be checked for compliance with the specific ECB reporting templates as well as for consistency and timeliness.
A number of advisors have been involved in the process of setting up ED. LCM Partners (formerly Link Financial) has been overseeing the ABS Loan-level Initiative and its implementation since its inception, playing a key role in coordinating the parties and advisors. ED's private placement has been conducted by Perella Weinberg Partners. Sapient Global Markets is the constructor of the software, whilst NTT Europe Ltd. will provide the hardware and back up services for ED. Morrison & Foerster has been ED's project legal advisor together with Noerr, and Deloitte has provided accounting and tax advisory services.
For further information and a schedule of upcoming events please visit http://www.eurodw.eu or contact:
SOURCE European DataWarehouse GmbH