Enra Specialist Finance has completed a £285m securitisation of its Elstree programme, making it the second public securitisation it has undertaken.
The transaction, named Elstree Funding No.2 Ltd, was backed by a portfolio of first-charge buy-to-let (BTL) and prime second-charge mortgages and was originated under its lending subsidiary West One Loans.
The securitisation comes two years after it issued its inaugural transaction in November 2020.
The lender said there was “significant investor demand” for the bonds, and the deal achieved “tight pricing” despite being oversubscribed.
It continued that the securitisation came after a record year where the firm delivered £36m of earnings before interest, taxes, and amortization (EBITA), lending growth and scale and optimisation within its funding programme.
Referring to what he called a high level of investor engagement and strong execution, Adrian Scragg, Enra’s director of funding solutions, said the result was “testament to the strength and maturity of the business, and the high credit quality of the loans it originates”.
Danny Waters (pictured), Enra’s chief executive, said: “The securitisation is a great start to the year, and the culmination of significant work through 2021 to mature and industrialise our funding. In the last 12 months we have attracted new warehouse partners, established a flow agreement, grown our lending significantly and delivered on our promise to become a repeat residential mortgage backed securities (RMBS) issuer.”
He added the business was “extremely well placed to scale up further in 2022”.
Originally a bridging lender, West One entered the second charge and development finance markets in 2017 and launched BTL products in 2019.
Enra said it serviced all of its assets in-house and also acted as a specialist mortgage distributor under the Vantage Finance and Enterprise Finance brands.