The Northview Group breaks through £8bn of public securitisation

Michael Lloyd

March 8, 2019

The Northview Group (NVG) has priced the latest securitisation transaction from its Finsbury Square programme, bringing the total issuance to £8.2bn since the group was formed.

The £535m deal saw healthy demand from investors, with the transaction being upsized from the initial size of £375m.

Alex Maddox, capital markets & digital director, said: “The RMBS market has been very slow in 2019 as a result of Brexit and the new securitisation regulation but we felt that a well-structured transaction, backed by high quality collateral, would be well received by investors.

“The response from investors was beyond our expectations and we would like to thank all those involved. This deal will strengthen Kensington’s funding position even further.”

All tranches were oversubscribed even after the upsize. A wide range of investors were involved in the transaction including banks and fund managers from the UK, US, Australasia and Europe.

This funding will support Kensington’s significant origination of owner occupied and buy-to-let loans. Kensington’s loan book continues to perform well with cumulative losses of less than £150,000 on the almost £5bn of loans originated since 2010.

Despite a period of market volatility due to Brexit, the cost of funding from this latest transaction was comparable with the equivalent notes from NVG’s November securitisation.

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