Press Releases • July, 2020
Kensington Completes Largest Public Securitisation Since Lockdown
Kensington Completes Largest Public Securitisation Since Lockdown, Surpassing £1BN in Mortgage Bonds Since June
London, 24 July 2020: Kensington Mortgages, the specialist mortgage lender, has raised £650m of funding through the wholesale financial markets.
The deal - RMS32, issued via Kensington’s legacy funding shelf Residential Mortgage Securities – is the largest public residential mortgage-backed securitisation (RMBS) to be successfully sold to investors following the easing of Covid-19 lockdown restrictions.
Kensington is the first issuer to access the UK RMBS markets twice since the reopening of capital markets in mid-June. It has raised in excess of £1bn in the last month*.
RMS32 comprises seasoned non-conforming first charge and second charge residential mortgages. It will allow the refinancing of two existing Kensington legacy securitisations, RMS 28 and KMS 2007-1 that will be called in September.
The deal marks the 21st UK RMBS deal issued by Kensington since its acquisition by Blackstone and TPG in 2015, bringing the total bond issuance to over £11.5 billion.
The deal has garnered strong demand from the majority of global ABS investors with a total of 17 unique investors across the tranches. It was oversubscribed across all tranches; both senior and junior bonds priced at the tights of any other recent deal brought by a specialist lender since June.
RMS32 is the last transaction of a series of 11 UK RMBS deals placed to the market since its re-opening mid-June evidencing the return of a functioning ABS market in the UK after having been closed for 3 months.
The transaction allows Kensington to secure more funding to support growing demand from its mortgage customers.