Kensington has closed a securitisation of £508 million, its second transaction in less than three months that has been upsized yet still oversubscribed.
Gemgarto 2015-1 plc was originally marketed as a smaller transaction, but strong demand enabled Kensington to increase the size of the issue.
The securitisation was rated by Fitch and Moody’s and included £423 million of AAA-rated bonds, priced at 0.95% over LIBOR. Kensington’s previous Gemgarto deal in 2012 priced the AAA-rated bonds at 2.95% over LIBOR.
In March, Kensington closed its first securitisation in three years, raising £497 million to help position the lender for expansion.
The completion of Gemgarto 2015-1 means that Kensington has now raised more than £1 billion in less than three months.
Ian Henderson, chief executive of Kensington, said: “The strong demand for this securitisation endorses the quality of collateral that Kensington is able to generate and gives us significant impetus in continuing to originate new assets by growing our lending volumes.
“Over the past 20 years Kensington has developed the experience and expertise to identify credit worthy individuals who do not fit mainstream criteria. We know that there is a real demand from customers who need a lender that is able to consider their individual circumstances and we plan to grow our business by meeting that customer demand.”