Kensington priced its latest securitisation transaction on 3 October 2019, bringing its total issuance to over £9 billion since the group was formed under its current ownership in 2015. The deal is the ninth from the lender’s Finsbury Square shelf, which it uses to securitise its owner occupied and buy to let originations and is priced at SONIA +101bp for the senior tranche.
The £425 million deal saw significant demand from investors, leading to the transaction being upsized from an initial size of £285 million. All tranches were oversubscribed even after the upsize. The transaction allows Kensington to secure more funding to support growing demand from its mortgage customers.
The RMBS market continues to be active despite prevailing Brexit uncertainty. Seven transactions were publicly placed with investors since the beginning of September this year. Despite the increased supply of bonds in the primary market, Kensington’s transaction was able to attract a wide range of investors and achieved excellent pricing terms.
Alex Maddox, Capital Markets & Digital Director, comments:
“With the successful pricing of our third securitisation of the Finsbury Square programme of the year, Kensington is the most active issuer in the UK RMBS market. The continued strong investor demand for Kensington’s transactions demonstrates the market’s confidence in the high-quality business we originate.”