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Kensington completes £280m securitisation


Kensington has completed a £280m securitisation.

The bond, known as Gemgarto 2015-2, is made up of new originations with a seasoning of nine months and a weighted average LTV of 74 per cent.

The senior tranche has been priced at three-month Libor plus 145 basis points.

This is the third securitisation from Kensington in 2015, with transactions totalling nearly £1.29bn. In July the lender securitised £508m of new assets through Gemgarto 2015-1 and back in March it completed a £497m securitisation of more seasoned assets.

Kensington business origination and development director Alex Maddox says: “This is another strong performance from a Kensington securitisation. We have achieved pricing at the tighter end of the guidance and better than recent competitor issuances, which confirms investor confidence in the quality of the assets we are generating.

“We have raised well over £1bn of funding since the change of ownership early this year and this, combined with the capital committed by our owners, will provide a strong foundation for our growth plans.”

Blackstone and TPG completed the deal to purchase Kensington for £180m in September last year.



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