Keystone Property Finance has completed its largest ever securitisation, containing £560m worth of BTL loans originated by the lender.
The Hops Hill No.4 includes pre-funding of 15%, and includes loans from Hops Hill No. 1, the firm’s first securitisation, which was issued in January 2021 and will be called in May 2024.
Strong demand from multiple investors was seen for Hops Hill No.4, with the senior notes 1.5 times and the mezzanine notes more than three times oversubscribed.
The AAA notes achieved a price of Sonia +88 basis points, reflecting both the high demand and the quality of the loans within the bond.
The issue marks the fourth public securitisation Keystone has completed since relaunching in 2018, and the second where it has been the servicer.
Elise Coole, managing director at Keystone, said: “Over the past six years we have gone from strength to strength, going from a new entrant to becoming one of the go-to lenders in the specialist BTL market — this securitisation marks the next step in that journey.
“We are delighted with how well this has gone and seeing the Hops Hill issuance develop over time with each new securitisation.
“The fact it has priced so attractively and garnered strong interest among investors is a testament to our underwriting criteria and the teams that work hard every day, alongside our broker partners, all of which are committed to the great outcomes.
“We are always strategically looking forward, and we will continue to evolve our offering and our product set to ensure that they remain relevant to our broker partners and their clients; this deal allows us to continue that good work.”
Marko Feiertag, portfolio manager at TwentyFour Asset Management, commented: “We have been working together with Keystone as sponsor of the Hops Hill platform for more than five years.
“The financial markets were very challenging the last couple of years, and we have been impressed throughout the journey with the strong management team at Keystone reacting quickly to challenges and being able to implement new innovative products in a short time with their in-house IT platform.
“We are delighted to work together with the Keystone team and thrilled how well established the Hops Hill funding platform has become attracting new investors on their latest transaction; we look forward to many more successful years of collaboration.”
