Clifford Chance bags HVB role on tripartite collateralised loan

Clifford Chance bags HVB role on tripartite collateralised loan” />Clifford Chance has scooped the lead role advising on a unique collateralised loan obligation (CLO) that incorporates three bank portfolios in a single transaction.

The firm advised German bank HypoVereinsbank (HVB) on the CLO, which involved UniCredit Banca d’Impresa and Bank Austria Creditanstalt.

HVB, a client of Clifford Chance’s German office, was the lead bank on the e6.2bn (£4.2bn) CLO that combined the loan portfolio of the three separate banks.

Clifford Chance lead partner on the transaction, Claude Brown, said: “The deal is the result of a longstanding relationship that our German office has with HVB. Although other firms were considered, there was no formal beauty parade. We were very pleased to have been instructed.”

Kirsti Vasu and Kerstin Schaepersmann in Frankfurt also advised on the structuring for HVB, while Austrian firm Schönherr Rechtsanwälte advised on Austrian law and Clifford Chance partner Anna Bessant acted for the trustee.

The deal, which spanned three European jurisdictions, had to take into account original and updated capital adequacy laws Basel I and Basel II, which came into force in January this year.

“We had to make sure we considered both Basel I and Basel II compliance when completing the documentation,” explained Brown. “While the regulation applies to all jurisdictions, regulators each apply it in a slightly different way. It is important to factor this into the transaction.”

Despite the extensive regulatory intricacies, the pan-European deal was completed in three months.

“The fact that we had to structure it as one legal entity did make the transaction more intense to structure than a normal CLO,” said Brown. “There was far more analysis of how it would be organised and documented.”