Atom Bank has announced a £400m residential mortgage-backed securitisation (RMBS) – the first of what it expects to be an ongoing source of funding.
The bank has confirmed the deal with Elvet Mortgages 2018-1, which will see £400m of bonds publicly placed and used to support Atom’s loan book growth.
Atom Bank said it anticipates being a regular RMBS issuer which “will provide funding for long term sustainable growth” alongside its retail deposits.
Chief financial officer David McCarthy (pictured) said he was delighted to begin the RMBS programme and added that securitisation was one of the ways the lender was securing funding for the business.
“We’re pleased with the level of demand for the notes and investor feedback on our lending platform. In line with our goals to grow our bank and giving customers a fair deal, we anticipate being regular issuers of prime RMBS,” he added.
