Molo Tech Limited and ColCap Financial UK Limited have completed their first securitisation, entitled ‘Molossus BTL 2024-1’.
The securitisation totalled £300m of prime buy-to-let (BTL) mortgage loans in England and Wales, and is a residential mortgage-backed security (RMBS) transaction.
ColCap invested in Molo, the digital buy-to-let lender, in February 2023 via its UK subsidiary, ColCap UK.
The securitisation received a AAA(sf) rating from global credit rating agencies Fitch and S&P
Global Ratings respectively.
The ratings were for 87.5% of the pool and the senior tranche was priced at 0.95% over SONIA.
Macquarie Bank and Standard Chartered Bank acted as joint arrangers and Macquarie
Bank, Standard Chartered Bank, and Citigroup acted as joint lead managers.
Matt Kimber, CEO of Molo, said: “The success of this RMBS highlights the strength of Molo’s mortgage lending capabilities and the credit quality of our originations.
“It enables us to continue empowering landlords with accessible and innovative lending solutions while reinforcing our position as a leader in the buy-to-let mortgage market.”
ColCap UK’s treasurer, Paolo Tanca, added: “This deal represents a significant milestone for us, showcasing our ability to structure and execute successful RMBS transactions in the UK market.
“We are excited about the opportunities for future growth and expansion.”
Lastly, ColCap UK’s executive director and COO, Esther Morley, concluded: “Today’s successful RMBS announcement demonstrates growing confidence in the UK property market and in the quality of Molo’s buy-to-let portfolio.
“This strategic move with Molo is the first of many and demonstrates our commitment to innovation.
“It also marks the beginning of a new chapter for ColCap in the UK market. It sets the stage for further collaborations and growth opportunities, benefiting both our UK operations and our broader global presence, including ColCap Australia.”
