The deal priced on Wednesday following a week of successful investor meetings across London and the US. Impressive investor demand resulted in the order books growing to in excess of £4.2bn, resulting in a final deal size of £2.25bn.
The deal will be issued via the Fosse securitisation vehicle, and is made up of eight AAA tranches covering a range of maturities across five different currencies.
The Fosse transaction included 2 AA tranches, this represented the first public AA issuance from a UK Master Trust since 2007 and is another demonstration of the strength of the UK RMBS market and in particular the fantastic performance of the Fosse programme over the past six years.
The Fosse notes will be secured by a portfolio of UK prime, first-lien, owner occupied residential mortgages originated by Alliance & Leicester.
The deal has been priced 0.35% lower than the trade in January when Santander kicked off the 2012 UK RMBS issuance season.
Stephen Jones, chief financial officer at Santander UK, says the demand for the deal once again shows the strength and confidence the market has in Santander UK.
He adds: “Securitisations form an important part of our balance sheet management, and so far this year, we’ve raised £5.25bn through vehicles such as today’s, backed by residential mortgages.”