Together completes £365m securitisation

There were £365.2m notes placed and an advance rate of 95 per cent. The issued notes were rated by S&P and DBRS, according to a stock market announcement.

The securitisation is supported by a portfolio of first and second charge mortgages secured against small value commercial, residential and mixed use properties located in England, Wales and Scotland, with 38.5 per cent of the underlying borrowers being self-employed.

Gerald Grimes, group chief executive of Together, said: “We are delighted to announce the successful pricing of our third small balance commercial real estate MBS. The £365m CRE3 facility provides additional headroom as we further increase our support for UK SMEs and continue to shape our business for an exciting future.”

The group has seven existing public mortgage backed securitisations, five private securitisations, senior secured notes and revolving credit facility.

Gary Beckett, group managing director and chief treasury officer at Together, added: “This is our fifth funding transaction since January 2022, raising or refinancing some £3.1bn, as we continue to add further strength and diversity to our funding platform. We would like to thank our funding partners who continue to show strong support for the Together growth story.”

Together recently announced its results for the quarter to 31 March 2022, showing a 17.4 per cent growth in average monthly originations from the quarter to 31 December 2021 to £234.7m,  and a quarterly underlying profit before tax of £41.3m.