Allen & Overy said today that the GBP125 million mobile handset securitisation programme for Virgin Media Mobile, the first of its kind in Europe, underlines that securitisation techniques are a viable option for corporates aiming to secure funding efficiently.

The underlying receivables consist of loans provided by Virgin Media Mobile to its customers in order to finance the purchase of handsets from Virgin Mobile Telecoms.

A&O advised Royal Bank of Canada as arranger on the transaction, with a team led by London finance partner Tim Conduit.

“This deal proves the concept of mobile phone securitisation in Europe, which we’ve already seen in the U.S., and opens the door to other providers.” said Tim. He added: “It’s the next logical step in the consumer finance securitisation market. Investors will also welcome a new product, particularly as it provides access to a mature market with a diversification of users.”

The wider A&O team included London based head of securitisation Salim Nathoo, senior associates Jean Morice and Jonathan Garforth and associate Anees Backer. Tax advice was provided by partner Chris Harrison and associate Mark Spinney.