Kensington Mortgages has placed a £ 452million bundle of mortgage-backed securities in the wholesale financial markets.
The specialist lender says its Finsbury Square 2021-2 bond has been oversubscribed, with senior and mezzanine tranches sold to 26 different accounts. Senior debt was valued at 80 basis points above the overnight indexed average in pounds sterling.
The deal will raise £ 463.7million for the company, which it will use to support complex loans and underserved borrowers.
Kensington sells mortgages to the self-employed, people with multiple incomes and those over 55.
The bond was announced on November 3 and was issued in RegS and 144a formats, to attract new investors from US funds.
This is the lender’s third securitization of the year and brings the total funds it has raised to £ 13.4 billion in 24 deals since 2015.
Alex Maddox, Head of Capital Markets and Digital at Kensington Mortgages, said: “We continue to build on our strong position in the UK residential mortgage backed securities market and are delighted to issue our third and last securitization of the year.
“This follows Kensington’s issuance of the first social bond on the UK and RMBS markets [in February] and the first green bond in the UK asset-backed securities market from a specialist lender earlier this year [in June].
“Our business goal is always to help underserved borrowers. We look beneath the surface and consider complex and multiple sources of income and lend to those who fail the automated lending process that most banks rely on and who otherwise find it difficult to own a home.
“The activity is experiencing strong growth accompanied by stable returns, which is reflected in the strong investor appetite for our securitizations. “