20th Mar 2020 10:44
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SEE "IMPORTANT INFORMATION" BELOW
20 March 2020
LendInvest completes second securitisation nine months after debut issue, amid unprecedented market turbulence
LendInvest Limited, the ultimate holding company of LendInvest Secured Income plc, has completed the LendInvest Group's second securitisation of Buy-to-Let (BTL) mortgages in an oversubscribed RMBS transaction, Mortimer BTL 2020-1.
Despite significant market turbulence from the global spread of the Coronavirus, it took LendInvest six business days to price the transaction after opening investor discussions.
The securitisation, which comprised £285 million of UK prime BTL mortgage loans, received an AAA(sf) rating (for 85% of the pool) from Fitch and S&P Global Ratings, the global credit rating agencies. The senior tranche was priced at 1.07% over SONIA*; this is 23bps better than LendInvest's securitisation last year.
Rod Lockhart, Chief Executive of LendInvest, commented: "When we launched the roadshow for this transaction, no-one could have predicted the full extent of the market turmoil that was about to unfold. It has been a truly unprecedented and unusual environment to agree and settle a transaction as substantial as this for LendInvest - let alone the whole UK mortgage market. The circumstances mean it's all the more rewarding to have returned to the RMBS market as emphatically as we have done with this transaction.
Our much-improved pricing and the appetite for this transaction from both existing and new investors have proven our liquidity, our funding model and the resilience of our wider business strategy to withstand market uncertainty. This transaction ensures our levels of BTL lending needn't dip over the coming months as the world works through this most unusual time."
LendInvest remains the only UK Fintech platform to have securitised its own assets. This transaction comes only nine months after LendInvest entered the RMBS market with its first securitisation of £259 million BTL loans, Mortimer BTL 2019-1.
Leveraging its end-to-end technology platform, LendInvest provides BTL borrowers and intermediaries with a superior customer experience. LendInvest remains one of few mortgage lenders to use Open Banking, a time-saving, tech-enabled service to which over two thirds of its BTL customers subscribe; and the company is typically able to make a BTL mortgage offer faster than its offline competition.
LendInvest has lent more than £3 billion of property finance to UK borrowers since 2008.
Citi acted as Sole Arranger. Citi, National Australia Bank and JP Morgan acted as Joint Lead Managers.
--Ends--
Note to Editors
* SONIA: Sterling Overnight Index Average
Contact
Carmen Dixon | [email protected] | 07713 110624
Leigh Rimmer | [email protected] | 07743 445856
About LendInvest
LendInvest is the UK's leading platform for property finance.
LendInvest offers short-term, development and buy-to-let mortgages to intermediaries, landlords and developers. Its proprietary technology and user experience are designed to make it simpler for both borrowers and investors to access property finance.
LendInvest has lent over £3bn of short term, development and buy to let mortgages. Its funders and investors include global institutions such as HSBC, Citigroup, Gravis Capital and NAB, and, in 2019, it was the first Fintech to securitise a portfolio of BTL mortgages.
The company has reported annual profitable growth since 2015 and was named Digital Innovation Award Winner at the Sunday Times Tech Track 100 Awards, and both Specialist Lender and Buy-to-Let Lender of the Year for 2019 at the last NACFB awards.
www.lendinvest.com | @lendinvest
IMPORTANT INFORMATION
This announcement is released by LendInvest Limited and contains information that qualified or may have qualified as inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR), encompassing information relating to the bond programme mentioned above. For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is made by Rod Lockhart, CEO for LendInvest Limited.
The distribution of this announcement and other information in connection with any offer in certain jurisdictions may be restricted by law and persons who come into possession of this announcement or any document or other information referred to herein should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any jurisdiction.
This document contains statements that are, or may be deemed to be, 'forward-looking statements' with respect to the financial condition, results of operations and business of the Company or of LendInvest Limited (or its group) and certain of the plans and objectives of the Company, LendInvest Limited and its group with respect to these items. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as 'anticipates', 'aims', 'due', 'could', 'may', 'will', 'would', 'should', 'expects', 'believes', 'intends', 'plans', 'projects', 'potential', 'reasonably possible', 'targets', 'goal', 'estimates' or words with a similar meaning, and, in each case, their negative or other variations or comparable terminology. Any forward-looking statements in this document are based on the current expectations of the Company, LendInvest Limited and its group (as applicable) and, by their very nature, forward-looking statements are inherently unpredictable, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future.
Forward-looking statements are not guarantees of future performance and no assurances can be given that the forward-looking statements in this document will be realised. There are a number of factors, many of which are beyond the control of the Company, LendInvest Limited and its group, that could cause actual results, performance and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to: the Risk Factors disclosed in the Company's Base Prospectus dated 19 October 2017 (which have not been updated since the date of its publication); changes in the economies and markets in which the group operates; changes in the regulatory and competition frameworks in which the group operates; the impact of legal or other proceedings against or which affect the group; and changes in interest and exchange rates.
All written or verbal forward-looking statements made in this document or made subsequently, which are attributable to the Company, LendInvest Limited or any other member of the group or persons acting on their behalf are expressly qualified in their entirety by the factors referred to above. No assurances can be given that the forward-looking statements in this document will be realised. This document speaks as at the date of publication. Save as required by applicable laws and regulations, none of the Company, LendInvest Limited or any member of its group intends to update any forward-looking statements and does not undertake any obligation to do so. Past performance of securities of the Company cannot be relied upon as a guide to the future performance of securities of the Company. Nothing in this document should be regarded as a profit forecast.
This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any securities.
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