AIB completed the securitisation of £437.6m of UK mortgage assets to allow the bank to improve its cash position.
The partnership is the first successful unguaranteed securitisation of an Irish institution in three years, said HML.
The 48-hour back-up agreement has been created in order to give investors further assurance over the servicing of the assets.
The deal will see standby servicer HML, wholly owned by Skipton Building Society, receive daily portfolio data which allows it to execute the arrangement at any point.
Steve Rogers, HML’s director of securitisation services, said: “We’re delighted to help AIB make a successful return to the capital markets and secure funding.
“As well as helping lenders securitise to raise funds, HML can help institutions to deleverage assets quickly. We completed a deal last year with an Irish lender that saw over £1bn of assets migrated to HML in just four months, to allow a whole loan sale to go through on time.
“We’re also able to provide analytics-led arrears management services to improve the performance of portfolios, increase cash collected and reduce provisioning for lenders in Ireland and the UK.”
