The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

European credit card deals get US flexibility

MBNA Europe's delinked programme should help Europe's ABS issuers to respond to investor demand

Originator: MBNA Europe Bank

Size: £10 billion maximum aggregate nominal amount

Arranger: Barclays Capital

Date: August 3 2004

MBNA Europe Bank has imported delinked securitization technology from the US, increasing the flexibility of its European credit card-backed ABS deals.

Until now, European credit card deals have been single-issuance, full capital structure deals. In a delinked deal, an issuer can issue tranches of securitized debt without having to issue differently rated tranches at the same time. If each tranche meets its enhancement requirement, then, subject to repayment tests, an issuer can sell junior and senior notes at different times and with different maturities.

MBNA Europe's delinked programme is backed by credit card receivables in one of its existing receivables trusts. The trust holds receivables for three issuers ? Deva One, Deva Two, and the newly created Deva Three.

The issuers invest in the trust. Deva Two funds its investment by issuing notes directly into the market. Devas One and Three sell notes indirectly by issuing loan notes to special purpose vehicles set up by Chester Asset Receivables Dealings Issuer Limited (Cards).

Deva Three is the key to delinking the programme. Structurally no different to its siblings, it holds a much simpler interest in the trust and issues its loan notes differently.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree