Kensington Mortgages completes £472m securitisation

Jessica Nangle

February 3, 2021

Kensington Mortgages has completed its latest securitisation sized at £472 million.

The transaction is the first labelled social bond from a specialist lender and aligns with the ICMA Social Bond Principles of 2020 and contributes towards meeting the United Nations Sustainable Development Goals. 

The social bond has been formally accredited and recognised by ISS ESG, a provider of corporate governance and responsible investment solutions.

The deal was oversubscribed across all tranches and the all-in pricing achieved is the tightest by a Kensington securitisation since 2008, with a total cost of 66bps.

Kensington say that this deal highlights how they are aligning with UN Sustainable Development Goals relating to reducing inequality and building sustainable cities and communities.

This news follows the launch of Kensington’s eKo Cashback Mortgage, which was the first environmental-friendly mortgage product from a specialist lender in the UK.

Alex Maddox, capital markets and digital director at Kensington Mortgages, said: “We’ve started the new year in a very strong position.

“With the successful pricing of our first securitisation of 2021, it marks Kensington as the first specialist lender to issue Social Bonds in the UK RMBS markets.

“Our aim is always to help underserved borrowers.

“We look beneath the surface and consider complex and multiple income sources and lend to those who do not pass the automated credit process that most high street banks rely on and otherwise struggle to own a home.

“We are continuing to integrate ESG initiatives into our business.

“Last August, we publicly released our ESG targets for the current financial year for the first time – again making us the first specialist lender in the UK to publish such an initiative.

“These will be reviewed on an annual basis so that we can publicly report on the progress we are making in each area – and our targets will help ensure that we are creating a positive impact in both the workplace and wider world.

“We also provided EPC data for the properties in the GMG 2021-1 transaction which is the first time that this has been provided by a UK specialist lender.”

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