Press Releases • March, 2019

Kensington breaks through £8bn of public securitisation issuance

SECURITISATIONS

Kensington breaks through £8 billion of public securitisation issuance

Kensington has priced the latest securitisation transaction from its Finsbury Square programme, bringing the total issuance to £8.2 billion since the group was formed.

The £535 million deal saw healthy demand from investors, with the transaction being upsized from the initial size of £375 million. All tranches were oversubscribed even after the upsize. A wide range of investors were involved in the transaction including banks and fund managers from the UK, US, Australasia and Europe.

This funding will support Kensington’s significant origination of Owner Occupied and Buy to Let loans. Kensington’s loan book continues to perform well with cumulative losses of less than £150, 000 on the almost £5 billion of loans originated since 2010.

Despite a period of market volatility due to Brexit, the cost of funding from this latest transaction was comparable with the equivalent notes from NVG’s November securitisation.

Alex Maddox

Capital Markets & Digital Director

“The RMBS market has been very slow in 2019 as a result of Brexit and the new securitisation regulation but we felt that a well-structured transaction, backed by high quality collateral, would be well received by investors. The response from investors was beyond our expectations and we would like to thank all those involved. This deal will strengthen Kensington’s funding position even further.”

Kensington and Kensington Mortgages are trading names of Kensington Mortgage Company Limited (registered in England & Wales No. 3049877), which has its registered office address at: Ascot House, Maidenhead Office Park, Maidenhead SL6 3QQ.

Kensington Mortgage Company Limited is authorised and regulated by the Financial Conduct Authority (310336). Some investment mortgage contracts are not regulated by the Financial Conduct Authority.