The bond, called Friary No 2, was given a AAA rating by ratings agency’s Fitch and Moody’s. The society said the offering attracted ‘considerable interest from a number of high quality investors,’ further strengthening the society’s financial and liquidity position.
Principality, Wales’ largest building society, launched its growth strategy to increase its core mortgage business both inside and outside of Wales and since the beginning of 2012 net mortgage lending has grown by £1bn.
Steve Hughes, group finance director at Principality Building Society, said: “The strategy of the group continues to successfully deliver with strong growth in the core retail mortgage business. Profitability continues to be strong performing favourably compared to last year and against our internal targets. “
“As a mutual building society, we rely on retail savings to fund the majority of our lending and we remain committed to this model. However, it is also important that the Society builds a stable, diversified funding base for the long-term. This not only strengthens our overall balance sheet to provide safety for our savers, it also enables us to further improve our ability to lend and build our share of the increasingly competitive mortgage market.”
This is the society’s second RMBS – the first, Friary No1, completed in 2011.
Principality will announce its half-year results later in the summer.
