Foundation completes fourth securitisation

Ryan Fowler

October 15, 2019

Foundation Home Loans has completed its fourth securitisation since 2017 and its third of 2019.

Twin Bridges 2019-2 is Foundation’s first Sterling Overnight Interbank Average Rate (SONIA) trade, following its successful 2019-1 trade in late May this year. The lender said this reflected the significant growth in origination it has developed during the year.

According to Foundation, the trade attracted a record order book of over £850m, with all tranches of the £300m transaction at least two times over-subscribed.

There were 31 orders in total with over a third of the book coming from non-UK investors. Foundation said this enabled margins to be tightened significantly from initial price talk and for the AAA tranche to price inside secondary pricing.

Hans Geberbauer, chief executive of Foundation Home Loans, said: “To be announcing our third securitisation of 2019 – our fourth overall under the Twin Bridges platform – is incredibly satisfying and goes to show our rate of origination growth, and the demand for a quality mortgage book.

“We are also acutely aware that these are challenging times for the market and therefore the confidence our investors are showing in our proposition is testament to the quality of our operation and the strength of our treasury team.

“The further good news is that, regardless of future events, we now have the committed warehouse funding capacity to deliver our ambitious lending growth through to 2021. It is an exciting time for Foundation and we are just getting started.”

The transaction followed the lender securing £750m in new and renewed committed warehouse funding, providing Foundation with the capacity to fulfil its planned originations into 2021, even in the event of a closed securitisation market.

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