Keystone Property Finance has completed its sixth buy-to-let securitisation, Hops Hill No. 6, taking total issuance under the programme past £2bn. The £400m transaction comprises £320m of completed loans alongside £80m of pipeline loans to be added during the prefunding period.
Investor appetite was strong across the capital stack. The Class A AAA-rated notes were priced at SONIA + 84 basis points, while Class B and C notes were both more than three times oversubscribed, pricing at SONIA + 100 and SONIA + 130, respectively. The demand and pricing reflect investor confidence in both Keystone's loan book and the broader buy-to-let market.
Lloyds and BNP Paribas acted as joint lead managers on behalf of UK Mortgages Corporate Funding DAC, advised by TwentyFour Asset Management, which has been Keystone's funding partner on the Hops Hill programme for over eight years. Keystone acts as servicer on the transaction.
"Completing our sixth securitisation is a significant moment for Keystone and a reflection of the consistency and quality of our lending," said Elise Coole, managing director at Keystone Property Finance (pictured).
"The funding relationship with TwentyFour Asset Management has been in place for over 8 years, and thanks to their continued support, the Hops Hill programme is now a well-recognised name in the UK securitisation market.
"The continued support we see from investors speaks to the confidence they place in our underwriting and the performance of our loan book. It also reflects the resilience of the funding base we have built, which gives us the firepower to keep strengthening our proposition and support a wider range of landlords in what is a fast-moving and evolving market."
"We are delighted to have partnered with Keystone once again on the sixth securitisation under the Hops Hill programme," said Shilpa Pathak, portfolio manager at TwentyFour Asset Management.
"The platform has been consistently successful, and that success is underpinned by a highly experienced management team and a strong, disciplined approach to underwriting, qualities that are clearly reflected in the quality of the loan book and its consistent performance.
"Hops Hill No.6 is a further demonstration of that strength, and we look forward to continuing our long and fruitful partnership with Keystone."
The deal marks the latest in a series of milestones for Keystone over the past 12 months. The lender has expanded into new lending areas, including Refurb to Let and semi-commercial, invested in its technology platform, and in January added a third funding line from an international investment bank, broadening its funding base further.
