Keystone Property Finance has completed its sixth securitisation, taking total issuance under its Hops Hill programme beyond £2 billion.
The latest transaction, Hops Hill No. 6, comprises £400 million of buy-to-let mortgages, including £320 million of completed loans and a further £80 million of loans currently in the pipeline, which will be added during the prefunding period.
The lender said investor demand remained strong across the capital structure. The Class A AAA-rated notes were priced at Sonia plus 84 basis points, while the Class B and Class C notes were both more than three times oversubscribed and priced at Sonia plus 100 basis points and Sonia plus 130 basis points respectively.
Lloyds and BNP Paribas acted as joint lead managers on behalf of UK Mortgages Corporate Funding DAC, which was advised by TwentyFour Asset Management. Keystone continues to act as servicer on the transaction.
The latest securitisation follows a series of developments for the specialist lender over the past 12 months, including expansion into the Refurb to Let and semi-commercial lending sectors, investment in technology and the addition of a third funding line from an international investment bank earlier this year.
Elise Coole (pictured), managing director at Keystone Property Finance, said: “Completing our sixth securitisation is a significant moment for Keystone and a reflection of the consistency and quality of our lending.
“The funding relationship with TwentyFour Asset Management has been in place for over 8 years and thanks to their continued support the Hops Hill programme is now a well-recognised name in the UK securitisation market.
“The continued support we see from investors speaks to the confidence they place in our underwriting and the performance of our loan book.
“It also reflects the resilience of the funding base we have built, which gives us the firepower to keep strengthening our proposition and support a wider range of landlords in what is a fast-moving and evolving market.”
Shilpa Pathak, portfolio manager at TwentyFour Asset Management, added: “We are delighted to have partnered with Keystone once again on the sixth securitisation under the Hops Hill programme.
“The platform has been consistently successful, and that success is underpinned by a highly experienced management team and a strong, disciplined approach to underwriting, qualities that are clearly reflected in the quality of the loan book and its consistent performance.
“Hops Hill No.6 is a further demonstration of that strength and we look forward to continuing our long and fruitful partnership with Keystone.”
