Introduction

Is the Covered Bond funding tool for the 42 Spanish Savings Banks shareholders of Ahorro Corporación since 2001, through which they have become into one of the biggest Covered Bonds issuers in Europe.

Since December 2005, Savings Banks have issued under a Global AyT Cédulas Cajas Programme, through different series with a fixed or floating interest rate.

Always with a AAA/Aaa/AAA ratings from the three agencies (S&P, Moodys and Fitch) and a Global liquidity line given by ICO (AAA/Aaa/AAA), the Spanish Kingdom Agency.

Ahorro Corporación is the Spanish savings banks financial services group. It has been providing advisory and investment services to institutional customers and professional investors for over 30 years.

Through its extensive experience, it has become a benchmark among the investment community. It is one of the most active players in Spanish fixed income and equity trading, both cash and derivatives, and it ranks among the top four domestic firms in terms of UCITS under management. In recent years, it has also established itself in all areas of Investment Banking, in which it occupies a prominent position.

Ahorro Corporación's strength lies in its close collaboration with its shareholders: CECA and 42 savings banks.

Ahorro Corporación is structured into two strategic business units: Investment Banking and Investment Services. It also has a Corporate Unit which supports the two strategic business units

It has offices in Madrid, Barcelona, Sevilla, Málaga and Valencia and specialised subsidiaries in Boston and Miami (USA) through which it channels its international activities.

Ahorro Corporación's activity is based on two strategic business units: Investment Banking and Investment Services. Through Investment Banking, it provides clients with custom solutions in financial advisory, treasury, LBO, MBO, off-balance sheet transactions and corporate restructuring

Through Investment Services, it handles brokerage, investment fund and company management, and research.

Ahorro y Titulización, S.G.F.T, S.A, was founded the 16th of November of 1993 as a Management company of Securitization Funds, which commitments are amid others, the representation and defence of the owners of the notes issued by the Securitization Fund

Ahorro y Titulización meets all the requirements written in the Spanish law that regulates the asset securitization. The society, as a business management company, is obliged to extreme the levels of diligence and harshness in the develop of its functions, with the purpose of avoiding interest conflicts and give priority to the holders of the notes. Under that aim, Ahorro y Titulización is subjected to formal obligations and to a specific regimen by the C.N.M.V. (Spanish stocks exchange supervisor).

Savings Banks are credit entities with an identical functioning to the rest of entities that integrates the Spanish financial system.

Built under the framework of private foundations, Savings Banks have a social purpose, and activity with market criteria.

The main operative curiosity is the destination of an important percentage of their incomes to Social works. They have a strong local presence with an important net of branches, principally in their own regional area.

The first ones were founded around 200 years ago with the main aim of helping the savings and funding to people with difficulties, carrying at the same time with a strong social labour very important in their influence territory.

As the years went by, they were becoming into complete financial entities that nowadays offer all kind of services to their clients, through their more than 17.000 branches.

A clear identifying element of the Savings Banks is their social works, through which they transfer to the society part of their profits (%) in the form of cultural activities, pushing the integration of the poorest and disable people.

Cédulas Hipotecarias are notes issued by a credit entity with the backing of the whole mortgage portfolio of the financial entity itself.

They’ve got a double guarantee, backed by the issuer and by the whole mortgage portfolio. Beyond this guarantee, there is an issuance limit of the 80% of the eligible portfolio, which is the one that have the following requirements:

- The loan granted can not exceed the 80% of the value of the asset mortgaged appraisal for the funding of the construction, rehabilitation o acquisition of housing, and a 60% limit for the rest of mortgage loans.

- The house has to be assess by an independent appraisal company.

- The property has to be registered in the Property Register.

- The mortgages have to be constituted over assets that belong completely to the borrower.

- The assets over the ones the mortgage is conceded, needs to have an insurance policy, that covers at least the appraisal value.