European DataWarehouse Successfully Concludes Private Placement

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July 9, 2012
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European DataWarehouse Successfully Concludes Private Placement

LONDON, July 9, 2012/PRNewswire/ --

    European DataWarehouse GmbH (ED) is pleased to announce today the successful
completion of a private placement with fifteen key investors, consisting largely of global
banks and institutions. The placement has been coordinated by Perella Weinberg Partners.

    ED is a groundbreaking new company that was created with the support of the European
Central Bank (ECB), acting as a catalyst in the market, and global investors (through the
Market Group and ECB Technical Working Groups) to respond to the need for full disclosure
for investors in asset-backed securities (ABS). As well as providing an open platform for
all users to access ABS data, one of ED's key responsibilities will be to facilitate the
reporting of loan-level data of ABS transactions which will become a binding criterion for
the securities to be considered for eligibility in the Eurosystem collateral framework.
The ABS loan-level data will need to meet the information requirements prescribed in the
ECB loan-level templates which are available on the ECB website.

    (The ECB templates are available at
http://www.ecb.int/mopo/assets/loanlevel/transmission/html/index.en.html)

    ED's completion, which will include an extensive testing and system integration before
the ECB loan-level data requirements become binding, is envisaged towards the end of Q4
2012. Proceeds from the placement will be used to finalise the build-out of ED as well as
to provide the business with ongoing working capital.

    Fernando Gonzalez, Chairman of the ECB Technical Working Group on the ABS Loan-level
Initiative and Head of the Risk Strategy Section at the ECB, said:

    "ED is a cornerstone for the restoration of confidence in the ABS market. It will
bring to fruition a central European repository and data handling infrastructure created
for the market by the market. The Eurosystem has supported the creation of a single
data-handling infrastructure from an early stage and plans to negotiate terms of use of
ABS loan-level data. I would like to thank the 15 key investors as well as the Market
Group members for their dedication and support throughout the process."

    Paul Burdell, Director of European DataWarehouse and CEO at LCM Partners, added:

    "ED will be the key mechanism to access ABS loan-level information, helping investors
and other market participants to gain an in depth understanding of the underlying assets
for their required due diligence and stress tests. ED should also help improve liquidity
in the ABS market as information and full disclosure about the underlying assets will help
investors in their valuations, risk assessments and comparisons across multiple
jurisdictions and multiple asset classes."

    ED is planning several workshops to help issuers, investors and data providers
interfacing with its systems. The reporting process will start with RMBS transactions and
will then be extended to CMBS and SME securities shortly after. Auto loan, consumer
finance and leasing ABS transactions for inclusion in the Eurosystem collateral framework
will also be subject to ED's validation processes in due course.

    ED's governance structure currently envisages a Supervisory Board and a pricing
committee with the participation of the ECB and national central bank senior
representatives as active observers.

    ED's head office will be based in Frankfurt.

    Notes to the editors:

    In December 2010, the Governing Council of the ECB announced its intention to
establish loan-by-loan data requirements for ABS in the Eurosystem collateral framework,
with the aim of improving transparency and helping to restore investor confidence in the
European securitisation markets (the ABS Loan-level Initiative).

    As part of the initiative, the ECB in April 2011, encouraged the creation of a data
warehouse for the processing, verification and transmission of ABS loan-level data by an
independent constructor external to the Eurosystem. At the same time, former ECB President
Jean-Claude Trichet invited market participants to lend their support to this important
initiative.

    An independent group of nine leading ABS investors and originators from across Europe
called the "Market Group" was formed to oversee and advise in relation to the RfI and RfP
processes to select the advisors to build ED.

    ED will ensure that loan-level data is made available to market participants to
increase disclosure in relation to, and facilitate the risk assessment of, existing and
future ABS transactions. Processes and software systems will be put in place that allow
ABS originators to submit loan-level data to ED electronically, and the loan-level data
will be checked for compliance with the specific ECB reporting templates as well as for
consistency and timeliness.

    A number of advisors have been involved in the process of setting up ED. LCM Partners
(formerly Link Financial) has been overseeing the ABS Loan-level Initiative and its
implementation since its inception, playing a key role in coordinating the parties and
advisors. ED's private placement has been conducted by Perella Weinberg Partners. Sapient
Global Markets is the constructor of the software, whilst NTT Europe Ltd. will provide the
hardware and back up services for ED. Morrison & Foerster has been ED's project legal
advisor together with Noerr, and Deloitte has provided accounting and tax advisory
services.

    For further information and a schedule of upcoming events please visit
http://www.eurodw.eu or contact:

   
    European DataWarehouse
    Paul Burdell
    paulburdell@eurodw.eu

   
    MHP Communications
    Andrew Jaques
    Ian Payne
    t: +44(0)203-128-8100

Source: European DataWarehouse GmbH

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