Keystone Property Finance has completed its first-ever securitisation.
The £400m securitisation, Hops Hill No.1 PLC, is the first to include an element of pre-funding – meaning a proportion of the issue includes loans currently in the pipeline – since the start of the coronavirus crisis.
The mortgages securitised were originated under a forward flow agreement between Keystone and UK Mortgages Limited (UKML), a listed investment company managed by TwentyFour Asset Management.
A price of Sonia +95bps was achieved for the AAA senior notes.
Keystone and UKML will use the capital released from the deal to boost further lending and to bring new products to the broker market in 2021.
The specialist buy-to-let lender will utilise a second warehouse facility through UKML.
Meanwhile, Elise Coole has been promoted from chief operating officer to the position of managing director at Keystone Property Finance with immediate effect.
Coole, who has over 15 years of experience in the world of credit and lending for many leading and respected brands including Commerzbank AG and Heylo Housing, is tasked with growing the specialist lender’s presence in the market and will play a leading role in deciding the firm’s future strategy.
Coole said: “This securitisation represents a landmark moment for Keystone and is another nod to the skills, capability and years of dedication put in by our superb team here in Kent.
“The fact we were able to attract such strong investment in the middle of a global pandemic is a testament to the quality of the lending the team here carry out on a daily basis and the confidence investors have in that process.”
Rob Ford, founding partner and portfolio manager of TwentyFour Asset Management, added: “We’re delighted with the relationship we’ve developed with Keystone over the last two years and the quality of the mortgage pool we built together was borne out by the overwhelming reception the securitisation received, despite the difficult times the world continues to endure. We are already looking forward to building a second portfolio, and furthering our relationship as we build out the product range.”