Keystone Property Finance, the specialist buy-to-let lender, has successfully completed its fifth securitisation – pricing at the tightest levels seen in the market this year and the tightest levels yet for the Hops Hill programme.
Hops Hill No.5 contains £400m-worth of buy to let loans originated by Keystone, including £80m of pre-funding.
Lloyds Bank and BNP Paribas acted as joint lead managers on Hops Hill No.5 (on behalf of UK Mortgages Corporate Funding DAC, advised by TwentyFour Asset Management). Strong investor demand resulted in significant oversubscription across the entire capital stack. The Class AAA notes were priced at Sonia +73 basis points and were two times oversubscribed. The Class B & C notes were both over 5 times oversubscribed and the junior notes were two times oversubscribed. The pricing and demand reflect both investor confidence in the UK BTL sector and the high quality of Keystone’s underlying portfolio.
Hops Hill No.5 is the latest milestone in Keystone’s growth journey. Since relaunching in 2018, the lender has completed five public securitisations since its first transaction in January 2021. Keystone has been the servicer on the most recent three transactions.
Elise Coole, Managing Director of Keystone Property Finance, comments:
“We’re extremely proud to have completed our fifth securitisation – and to have done so with the tightest pricing in the market this year is a fantastic result. The strong investor demand reflects both the consistent quality of our lending and the strength of the Hops Hill programme.
“Our track record speaks for itself. With every deal, we’ve demonstrated strong performance, robust underwriting and strong credit quality, giving investors confidence in our proposition and what we stand for as a lender. Hops Hill No.5 is another important milestone and gives us additional firepower to keep supporting landlords with the funding they need in a fast-moving market.
“This has been a real team effort, drawing on the expertise and commitment of everyone across the business as well as the continued backing of our broker partners. It’s this combination of talent, experience and shared ambition that allows us to keep evolving, delivering and setting the standard in the specialist buy to let market.”
Shilpa Pathak at TwentyFour Asset Management, says:
“We have proudly partnered with Keystone as a sponsor of the Hops Hill platform for nearly seven years. Throughout this period, the Keystone team has consistently responded swiftly to the dynamic challenges of the market, leveraging their deep expertise in key areas such as underwriting, servicing, risk management, and technology. This integrated strength has been a fundamental driver of the consistently strong loan performance we’ve seen throughout our partnership.
“We are especially delighted with the successful execution of the fifth public RMBS deal on the Hops Hill platform, which achieved one of the tightest pricing levels in the UK BTL RMBS market this year, alongside strong book coverage across the capital stack. This accomplishment further demonstrates the platform's ongoing strength. We look forward to many more years of shared success and partnership with Keystone.”
