Keystone Property Finance has successfully completed its fifth public securitisation, raising £400m in funding and setting a new pricing benchmark for its Hops Hill programme.
The specialist buy-to-let lender confirmed that investor appetite remained strong across the capital stack, with the latest Hops Hill No.5 transaction pricing at the tightest levels seen in the UK market so far this year.
The securitisation, backed by £400m of buy-to-let loans originated by Keystone, includes £80m of pre-funding. Lloyds Bank and BNP Paribas acted as joint lead managers on the deal on behalf of UK Mortgages Corporate Funding DAC, which is advised by TwentyFour Asset Management.
Investor demand was robust, with the Class AAA notes pricing at Sonia +73 basis points and attracting double the amount of subscriptions available. The Class B and C notes were more than five times oversubscribed, while junior notes were twice oversubscribed.
The pricing levels and oversubscription rates point to growing confidence among investors in both the UK’s buy-to-let sector and Keystone’s lending portfolio, the lender said.
“MAJOR MILESTONE”
Elise Coole (pictured), managing director of Keystone Property Finance, said the deal represented a major milestone in the lender’s evolution since its relaunch in 2018.
“We’re extremely proud to have completed our fifth securitisation – and to have done so with the tightest pricing in the market this year is a fantastic result.
“The strong investor demand reflects both the consistent quality of our lending and the strength of the Hops Hill programme,” said Coole.
She added that the securitisation would further enhance Keystone’s ability to support landlords, enabling the firm to continue offering funding in what remains a competitive and fast-moving market.
Since its first public transaction in January 2021, Keystone has completed five public securitisations, servicing the most recent three. The Hops Hill platform has played a central role in the lender’s funding strategy, allowing it to maintain lending momentum while demonstrating credit performance that has drawn repeated institutional backing.
TwentyFour Asset Management, the long-standing adviser to the Hops Hill programme, also welcomed the success of the latest transaction.
Shilpa Pathak of TwentyFour Asset Management said: “We have proudly partnered with Keystone as a sponsor of the Hops Hill platform for nearly seven years.
“Throughout this period, the Keystone team has consistently responded swiftly to the dynamic challenges of the market, leveraging their deep expertise in key areas such as underwriting, servicing, risk management, and technology.”
Pathak described Hops Hill No.5 as one of the strongest deals of the year in the UK buy-to-let RMBS market, citing both its pricing and oversubscription levels as evidence of investor conviction in the platform’s performance and resilience.
