Cynergy Bank has completed its debut securitisation, a cash derecognition RMBS transaction.
The deal, named Lovelace CBP 01, is backed by buy-to-let mortgages secured on residential and commercial properties.
The transaction features a two year replenishment period, during which time the Bank can sell in further lending to customer groups already in the pool.
The Lovelace CBP 01 deal is intended to be the first of a regular issuance programme. The special purpose vehicles will be named after UK innovators (Ada Lovelace, pioneer of mathematics and computing, being the first).
These deals will allow Cynergy to fund continued growth capital, with its loan book expanding from roughly £1.5bn in 2018 to £4.5bn today.
Nicholas Fuller, director of group treasury at Cynergy Bank, said: “This transaction demonstrates Cynergy Bank’s ability to innovate in securitisation while keeping customer needs at the heart of our approach.
"The replenishment period gives us the flexibility to support existing borrowers with further advances and product switches, while delivering capital efficiency and balance sheet optimisation.”
