Asset Securitization Funds for SMEs (FTPYME)

What are FTPYME Securitization Funds for SMEs

Asset securitization funds are a way of transferring risk (loans or credits) and providing liquidity for the transferor (banks or savings banks).

In order for a securitization fund to be considered a FTPYME:

• Loans or credits awarded to non-financial institutions with a registered company address within Spain must be securitized (handed over to the fund) and at least 50% of these must have been awarded to SMEs. The initial repayment period for these loans or credits must be no less than one year.
• The financial entities that awarded these loans or credits must reinvest at least 80% of the proceeds obtained as a result in new loans or credits for SMEs within the following two years. At least 50% of the reinvestment must be carried out during the first year.

The State will guarantee 80% of securities issued by FTPYME funds that have a rating of AA, Aa, or higher through the Public Treasury.

All of the bonds (securities) issued by a securitization fund and guaranteed by the State must be traded on an official Spanish Securities Exchange.

General Requirements for Setting Up FTPYMES

• The Spanish National Securities Exchange (C.N.M.V.) must be informed. 
• They must be previously approved and registered by the National Securities Exchange. 
• The reports previously drawn up by the auditors and other independent experts authorized by the National Securities Exchange must be submitted.
• The reports drawn up by the credit rating agencies must be submitted to the National Securities Exchange.
• The information leaflet must be verified and registered in the National Securities Exchange.
• Articles of incorporation and possible registration in the Companies Register.

Specific Requirements for FTPYMEs

• The agreement between the transferor entity and the Directorate-General of SME Policy of the Ministry of Industry, Tourism, and Trade established in Presidency Ministry Order PRE/3/2007, of January 10, must be signed.
• The agreement between the management company (sociedad gestora) that is to set up the fund and the Directorate-General of SME Policy of the Ministry of Industry, Tourism, and Trade established in Presidency Ministry Order PRE/627/2011, dated 22 March, must be signed.