Kensington has priced a new securitisation from its Gemgarto programme.
Known as Gemgarto 2015-2, the transaction is backed by £280 million of new Kensington originations, with a seasoning of nine months and weighted average LTV of 74%.
The lender said the new securitisation has attracted strong demand, with 14 different investors across all tranches and the Class A note of the transaction being more than three times oversubscribed.
The senior tranche has been priced at 3-month LIBOR +145bps and been given the Prime Collateralised Securities label.
This is the third securitisation from Kensington in 2015, with the transactions totalling nearly £1.29 billion. In July the lender securitised £508 million of new assets through Gemgarto 2015-1 and back in March it completed a £497 million securitisation of more seasoned assets.
Alex Maddox, business origination and development director at Kensington, said: “This is another strong performance from a Kensington securitisation. We have achieved pricing at the tighter end of the guidance and better than recent competitor issuances, which confirms investor confidence in the quality of the assets we are generating.
“We have raised well over a billion pounds of funding since the change of ownership early this year and this, combined with the capital committed by our owners, will provide a strong foundation for our growth plans.
“Kensington’s experience over 20 years shows that sometimes life just gets in the way of a standard mortgage application and there is a real demand from credit worthy customers who could benefit from an underwriter looking at their individual case.”
