Renault S.A. – Annual report – 31 December 2021
15-B. Assignment of Sale financing receivables
The Sales Financing segment has undertaken several public securitization operations (in Germany, France, Italy and the United Kingdom) and several conduit financing operations (France, the United Kingdom and Germany) involving loans to final customers and receivables on the dealership network. Both types of operation are conducted through special purpose vehicles. Some public operations were subscribed by RCI Banque, which makes it possible to have securities eligible as collateral for the European Central Bank.
In 2021, the Sales Financing segment placed a public automotive loan-backed securitization in Germany, and issued €900 million of senior instruments (of which €200 million were self-subscribed).
The receivables assigned through such operations are not derecognized, as all risks are retained by the Group. The associated liabilities correspond to securities resulting from the securitization operations, and are recognized in other debts represented by a certificate.
The difference between the receivables assigned and the amount of the associated liabilities corresponds to the higher credit necessary for these operations, and the share of securities retained by RCI Banque to form a liquidity reserve.
Securitized assets can no longer be assigned or pledged. Subscribers to debt securities only have claims on the assets assigned.
Assets pledged as guarantees for management of the liquidity reserve are presented in Note 28-A.4.