The Canterbury Finance No.5 securitisation is expected to generate £1.1bn of AAA rated senior bonds for the group, which it said increased its wholesale funding options.
A higher priority is placed on senior bonds than other bonds of the same class in case of a firm’s default or bankruptcy. They generally carry a lower risk and therefore pay lower rates of interest to investors.
Senior bonds are considered to be a safer investment.
Andy Golding (pictured), CEO of OSB Group, said: “This transaction, our first structured finance trade of the year, significantly increases the contingent wholesale funding options available to us. The transaction provides ongoing evidence of our sophisticated approach to liability management.
“I would like to thank our transaction advisors and counterparties for supporting us on this transaction.”