Avis PRESS AREA
Avis attracts €130 million of international capital
Avis attracts €130 million of international capital intended to finance its investments in green mobility
The 1st Investment Grade transaction in Greece since 2010.
Avis, the leading car rental company in Greece, secured international financing to modernize its fleet with electric and hybrid cars. Despite unprecedented conditions, the Company remains committed to the implementation of its strategic plan around sustainable growth that combines green mobility and the drastic reduction of its environmental footprint.
Avis raised €130 million through its first auto leasing securitization with an average interest rate of less than 1.4%. The issue was fully covered by the following three international institutional investors:
- European Investment Fund (EIF) with €43 million
- European Bank for Reconstruction and Development (EBRD) with €37 million
- Dutch institutional investor with €50 million, guaranteed by EIF.
This is the largest non-banking securitization ever implemented in Greece, which at the same time places the Company among the very few Greek businesses that have the ability to raise capital on exceptional terms from sources beyond the Greek banking system.
This is the first securitization since 2010 in Greece to achieve investment grade rating by two major rating agencies, namely S&P and Fitch Ratings, with the senior notes being rated BBB+. The rating is two notches higher than the Investment Grade threshold, while it is the highest possible rating taking into consideration the country’s current rating (BB). The successful completion of this complex transaction certifies the Company’s strong financial performance, its healthy and low-risk portfolio, and the sound policies and procedures that the Company applies.
“The European Investment Bank Group is committed to accelerating investment essential to reduce carbon emissions. This new €93 million European Investment Fund direct and guaranteed support, will enable companies across Greece to lease electric and hybrid vehicles and expand their business activity through green investment. This €130 million transaction, the largest private sector securitization financing ever implemented in Greece, confirms both the high quality of investment projects in Greece and investor confidence. This milestone has been achieved thanks to the excellent cooperation between Greek and international financial partners.” said Christian Kettel Thomsen, European Investment Bank Vice President.
“This is an important transaction and the EBRD is very pleased to make a substantial contribution. The success of the issuance sends a powerful signal to the market, as this is the largest non-banking securitization in Greece and the first to have a sustainable and green focus. The transaction demonstrates how the EBRD can contribute to supporting the private sector’s efforts to improve its environmental balance and further support the Greek economy at the wake of the Covid-19 crisis”, said Dariga Sambayeva, EBRD Associate Director, Financial Institutions.
“We are proud to have successfully completed this important transaction on exceptional terms despite the difficult circumstances. This is the largest investment grade securitization in Greece in the last decade. A transaction covered exclusively by international institutional investors, such as the EIF and the EBRD, who showed confidence in Avis' ability to grow sustainably with respect for the environment and the society, but also in our country's effort to recover after the crisis”, said Avis CEO, Andreas Taprantzis.
Citi and Piraeus Bank acted as arrangers and joint lead managers of the transaction.