Kensington completes £452m securitisation

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Kensington Mortgages has successfully priced Finsbury Square 2021-2, a £452m of mortgage-backed securities transaction, in the wholesale financial markets.

This is the lender’s third securitisation for the year. This takes the total funds raised for the Group to £13.4bn in 24 transactions since 2015.

The deal was announced to the market on Wednesday 3 November. All tranches were oversubscribed, with the seniors and mezzanine tranches going to 26 different accounts.

The transaction will raise £463.7 million of funding for the Group.

This transaction was issued in both RegS and 144a format, which allowed the group to attract new US fund investors.

The senior debt was priced at 80bps over SONIA.

Alex Maddox (pictured), capital markets & 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. This follows Kensington’s issue of the first Social Bond in the UK and RMBS markets and first Green Bond within the UK ABS market from a specialist lender earlier this year.

“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.”

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