You are here: Home - News -

Kensington sells £425m mortgage bond

  • 12/11/2021
  • 0
Kensington sells £425m mortgage bond
Kensington Mortgages has placed £425m of mortgage-backed securities in the wholesale financial markets.


The lender said the Finsbury Square 2021-2 bond was oversubscribed, with senior and mezzanine tranches sold to 26 different investor accounts. 

The transaction will raise £463.7m of funding for the group to continue issuing mortgages to borrowers with complex credit.  

This was Kensington’s third securitisation this year, with the first being a green bond at £472m followed by another at £750m. In total, the lender has raised £13.4bn in 24 transactions since 2015. 

This transaction was issued in both RegS and 144a format, which the lender said allowed the group to attract new fund investors from the United States. 

The senior debt was priced at 80 basis points over the SONIA rate. 

Alex Maddox (pictured), capital markets and digital director, Kensington Mortgages, said: “We continue to build on the strong position we hold in the UK RMBS market and are delighted to issue our third and final securitisation of the year.”  

He added: “Our business purpose aim is always to help underserved borrowers. We look beneath the surface and consider complex and multiple income sources and lend to those who do not pass the automated credit process that most high street banks rely on and otherwise struggle to own a home.  

“The business is seeing strong growth accompanied by stable returns, and this is reflected in the strong appetite amongst investors for our securitisations.” 

There are 0 Comment(s)

You may also be interested in