Intermediary lender Kensington has priced a new securitisation from its Gemgarto programme.
Known as Gemgarto 2015-2, the transaction is backed by £280m of new Kensington originations, with a seasoning of nine months and weighted average loan-to-value (LTV) of 74 per cent.
The 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 three-month Libor plus 145 basis points.
This is the third securitisation from Kensington in 2015, with the transactions totalling nearly £1.29bn.
In July the lender securitised £508m of new assets through Gemgarto 2015-1 and back in March it completed a £497m 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.”
Ronan Marrion, mortgage specialist at Truro-based IFA Worldwide Financial Planning, said the amount raised by Kensington showed the securitisation market was once again confident about the quality of loans being offered up.
He said: “Now that lending is back to common sense principles, there is more confidence that securitisation won’t default and the loans in there are good quality.”
This latest securitisation deals comes after Investec sold Kensington to private equity buyers Blackstone and TPG Capital for £180m in cash late last year.
The listed South African banking and financial services group had owned Kensington for seven years and the deal came seven months after it first revealed it had been approached over a potential sale.
ruth.gillbe@ft.com
