Atom bank has completed pricing this week on its first residential mortgage-backed securitisation, Elvet Mortgages 2018-1.
£400m of bonds will be publicly placed and used to support Atom’s loan book growth.
Elvet Mortgages 2018-1 plc holds prime mortgage loans originated by Atom bank, making this the first RMBS rated by Moody’s where the loans were originated through a mobile app-based bank.
Atom anticipates being a regular RMBS issuer, which, alongside its expanding suite of retail deposit products, will provide funding for long term growth.
David McCarthy, chief financial officer at Atom bank, said: “We are delighted to announce the launch of our RMBS programme – the latest milestone in Atom bank’s development.
“Securitisation is one of the ways we are delivering efficient funding for our business, contributing to our overall model of keeping costs low and passing back that value to our customers through great mortgage deals.
“We’re pleased with the level of demand for the notes and investor feedback on our lending platform. In line with our goals to grow our bank and giving customers a fair deal, we anticipate being regular issuers of prime RMBS.”