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Together issues second commercial RMBS

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Together Financial Services Limited has completed its second public small balance commercial real estate mortgage backed securitisation (RMBS).

 

The £249m Together Asset Backed Securitisation 2021 has an advance rate of 95% and 79.75% of the issued notes were rated AAA(sf) by S&P and DBRS.

CRE2 is supported by a portfolio of first and second charge mortgages secured against small value commercial, residential and mixed use properties located in England, Wales and Scotland, with 40% of the underlying borrowers being self-employed.

An estimated 77.1% of the portfolio comprises commercial properties, with 17.9% being mixed-use properties, and the remaining 5.0% being residential properties.

CRE2 complements the group’s existing five public mortgage backed securitisations, four private securitisations, senior secured notes and revolving credit facility.

Gerald Grimes, group chief executive designate of Together, said: “We are delighted to announce the successful completion of our second small balance commercial real estate MBS, just three months after we issued the UK’s first transaction of this kind since the Global Financial Crisis.

“The £249m CRE2 facility provides additional resource as we continue to extend our support to UK businesses.”

Gary Beckett, group managing director and chief treasury officer at Together, added: “This is our fourth successful public transaction since the commencement of the pandemic, as we continue to add further strength and diversity to our funding platform.

“We would like to thank our funding partners who continue to show strong support for the Together growth story.”

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