The lender said the transaction would allow it to access Bank of England funding facilities and the Term Funding Scheme for SMEs.
It is the latest securitisation within the mortgage market following moves by Kensington and Vida which helped to restore the market after lockdown.
Paragon chief executive Nigel Terrington (pictured) said: “This transaction, Paragon’s 66th securitisation, has been fully retained and significantly enhances our contingent funding capacity and also continues our strategy to diversify the various sources of funding.
“Alongside our retail savings, which recently exceeded £8bn, wholesale funding will continue to be used to support our customers and the UK economy.”
Announcing the completion Paragon said its PM28 securitisation contained £720m of prime buy-to-let fixed rate mortgage assets, creating £623.8m of AAA rated senior bonds for the group.
“It is expected that the senior bonds will be used as collateral for the Bank of England repo funding facilities and the Term Funding Scheme with additional incentives for SMEs (TFSME),” it said.
“The senior bonds are also available as security for commercial repo transactions with other institutions.”