Kensington completes £508m securitisation

The securitisation was rated by Fitch and Moody’s and included £423 million of AAA-rated bonds, priced at 0.95% over LIBOR. Kensington’s previous Gemgarto deal in 2012 priced the AAA-rated bonds at 2.95% over LIBOR.

In March, Kensington closed its first securitisation in three years, raising £497 million to help position the lender for expansion. This completion of Gemgarto 2015-1 means that Kensington has now raised more than £1 billion in less than three months.

Ian Henderson, Chief Executive at Kensington, said:

“The strong demand for this securitisation endorses the quality of collateral that Kensington is able to generate and gives us significant impetus in continuing to originate new assets by growing our lending volumes.

“Over the past 20 years Kensington has developed the experience and expertise to identify credit worthy individuals who do not fit mainstream criteria. We know that there is a real demand from customers who need a lender that is able to consider their individual circumstances and we plan to grow our business by meeting that customer demand.”