Securitisation (1995-2001)

As part of the securitisation procedure, ARAVA loans are transferred to a special purpose vehicle that finances the purchase by issuing promissory notes to the amount of the transferred loans. The notes are secured by the ARAVA loan receivables assigned and transferred and the respective collateral. The notes are the sole obligations of the special purpose vehicle and are not obligations of, guaranteed by, or the responsibility of, any other entities or individuals. In particular, the issued notes are not obligations of the Republic of Finland or of any of its departments or agencies (including the Housing Fund of Finland, which has no liability for the notes). Through securitisation, ARA has been able to utilise ARAVA loans with long maturities and to generate cash-flows at an early stage of maturity from securitised loans to be allocated to new ARAVA lending.