Lloyds launches £2.5bn RMBS deal
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Lloyds Banking Group has launched and priced a securitisation deal backed by Bank of Scotland Mortgages worth £2.5bn.
The Permanent 2010-1 deal will be drawn from the same pool of prime assets as Lloyds’ last RMBS issue back in September.
That deal was worth £4bn and was over-subscribed by investors by more than two times over.
At the time the deal was widely tipped to signal the first signs of life for the European securitisation markets in the wake of the financial crisis.
This latest deal from Lloyds is being managed by Lloyds TSB Corporate Markets, Bank of America Merrill Lynch and JP Morgan.
It is split into four tranches and is notable because it is selling assets in pounds, euros, and US dollars.
The dollar-denominated tranche carries an interest, or coupon rate of three-month LIBOR plus 1.15%.
The sterling tranches were priced at three-month LIBOR plus 1.3%, while the euro-denominated tranche was at three-month Euribor plus 1.25%.
Robert Plehn, head of structured securitisation at Lloyds Banking Group, says: “We are delighted with the success of our latest RMBS issuance which saw great domestic, European and US demand.
“This represents another step forward in the reopening of the market, especially given the strong participation of investors from the US, a region that has not been tapped by European issue since 2007.”
