June 2024
Context
Re-negotiate NGE’s existing EUR250m trade receivables securitisation program to expand it after the acquisition of SADE by NGE
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
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
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