The transaction included £320m of completed loans and £80m pipeline deals that will be added during the prefunded period.
The latest transaction takes the total issuance under the Hops Hill programme to over £2bn.
Keystone Property Finance said the appetite from investors was strong and the Class A AAA-rated notes were priced at SONIA plus 84 basis points (bps), while both the Class B and C notes were more than three times oversubscribed and priced at SONIA plus 100bps and plus 130bps respectively.
The lender said the demand and favourable pricing reflected confidence in the quality of its loan book and the wider BTL market.
Lloyds and BNP Paribas acted as joint lead managers on behalf of UK Mortgages Corporate Funding DAC, advised by TwentyFour Asset Management. Keystone acted as servicer on the transaction.
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Elise Coole (pictured), managing director at Keystone Property Finance, said: “Completing our sixth securitisation is a significant moment for Keystone and a reflection of the consistency and quality of our lending. The funding relationship with TwentyFour Asset Management has been in place for over eight years, and thanks to their continued support, the Hops Hill programme is now a well-recognised name in the UK securitisation market.
“The continued support we see from investors speaks to the confidence they place in our underwriting and the performance of our loan book. It also reflects the resilience of the funding base we have built, which gives us the firepower to keep strengthening our proposition and support a wider range of landlords in what is a fast-moving and evolving market.”
Shilpa Pathak, portfolio manager at TwentyFour Asset Management, said: “We are delighted to have partnered with Keystone once again on the sixth securitisation under the Hops Hill programme. The platform has been consistently successful, and that success is underpinned by a highly experienced management team and a strong, disciplined approach to underwriting, qualities that are clearly reflected in the quality of the loan book and its consistent performance.
“Hops Hill No.6 is a further demonstration of that strength, and we look forward to continuing our long and fruitful partnership with Keystone.”
In the last 12 months, Keystone has entered the refurb to let and semi-commercial markets, invested in its technology, and broadened its funding base.
