With car and truck emissions’ impact on the climate growing in concern, sustainability efforts have grown with society valuing more climate-friendly approaches. Bicycles have quickly become a popular choice for commuting over cars, which has attracted more attention thanks to company bike leasing, which was invented by the Freiburg-based company JobRad. Like company car leasing, company bike leasing offers tax advantages to employees, enabling them to save up to 40 percent in cash compared to buying a new bike. This concept has allowed JobRad to get more than 1.5 million people onto bikes.
Since entering the market in 2019, JobRad Group’s central leasing company, JobRad Leasing GmbH, is an in-house, bank-independent leasing company that works exclusively with JobRad employers. JobRad has relied on asset-based refinancing for some time now, but with the help of BearingPoint, the company has ensured sustained future growth with a successful financing transaction.
Securitization Is Key
With JobRad’s financing strategies relying on asset-based refinancing, securitization is key to this type of liquidity management, as it involves pooling financial assets, like loans, leads, or trades receivables, and repackaging them into a new investment product. This is known as asset-backed commercial paper (ABCP). Yet, collecting a portfolio of eligible assets for ABCP involves managing extensive data from a variety of sources, meeting reporting requirements, and adhering to eligibility criteria. With such complexities, JobRad sought to automate and efficiently develop the asset portfolio for its first securitization translation while maintaining the feasibility and high level of digitization that describes the entire JobRad Group.
BearingPoint leveraged its Securitization as a Service solution to assist JobRad Leasing GmbH with its first securitization transaction. Jointly conducting an interface workshop with JobRad Leasing GmbH to identify the data requirements needed to meet market transparency standards helped build the foundation for comprehensive documentation to identify and evaluate the financial assets to be securitized and define relevant business logic. BearingPoint then created a technical platform that incorporated JobRad Leasing’s data, business events, and the required reporting formats.
Ensuring accuracy and completeness of the data, BearingPoint created detailed templates for functionality and design of all corporate reports related to funding operations, which made sure compliance standards were met, including reporting, documentation, and disclosure requirements. The project team was able to integrate the securitization platform with the client’s existing systems and workflows smoothly, and BearingPoint will provide monthly reports throughout the transaction that use data from JobRad Leading GmbH via the new interface on an ongoing basis. This further support will enable optimal and timely execution of the securitization transaction.
“Data is essential for JobRad to finance its sustainable solutions for eco-mobility in an efficient manner, particularly when it comes to securitization. We are very pleased that BearingPoint’s Securitization as a Service solution enables JobRad to meet the challenging capital market requirements for data quality and data transparency as it contributes to stable funding, improved liquidity, and efficient risk management,” said Donald Wachs, Global Leader BearingPoint Products.
Asset-Based Funding Simplified
JobRad Leading GmbH has improved its data management capabilities by using BearingPoint’s Securitization as a Service solution, and it is now capable of effectively handling the complexities of its first securitization transaction. Even more, JobRad’s leading GmbH can now enhance its liquidity and effectively manage risk due to its scalable operations and secure data. Now fully visible, the company can address compliance and extensive investor transparency requirements, as well as meet the reporting standards set by the European Securities and Markets Authority (ESMA).
“Working with BearingPoint on our first securitization transaction has been a very positive experience for JobRad Leasing GmbH. With BearingPoint’s solution, we were able to significantly simplify and streamline our processes and data management to meet our capital markets reporting requirements. As a result, we have been able to further broaden our refinancing base—bringing us one step closer to our goal of putting people on JobRad,” said Benjamin Kräutter, Team Leader of Treasury at JobRad.
