Sunday 11 December 2016

Dilosk reopens market for Irish securitisation with €206m deal

Published 29/05/2015 | 16:29

The surge in US startup funding stands in contrast to Irish startup deals from venture capital firms
The surge in US startup funding stands in contrast to Irish startup deals from venture capital firms

New lender Dilosk has reopened the market for Irish mortgage securitisation with a €206m deal.

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The new bond deal is backed by a portfolio of Irish home loans bought last year from Bank of Ireland. The funds raised will be used to finance new lending to the buy-to-let market here.

Dilosk will pay interest ranging from 0.8pc over the standard euribor rate on the bulk of the debt to 2.20pc over the market standard rate on a small slice of higher risk bonds after’s its over subscribed deal closed.

Securitisation deals are often complex debt structures that allow companies to raise cash against a pool of loan assets, typically mortgages. The interest paid to bond investors varies according to their rank in the structure, with riskier bonds commanding higher returns.

Dublin based Dilosk will retain a slice of the new financing deal, but the bulk of the new bonds have been issued to investors and are rated from AAA to BBB, by Standard & Poor’s and DBRS rating agencies.

 Deutsche Bank acted as sole arranger and lead manager for the deal, which may now be followed by further Irish securitisations as the market here stabilises.   

Dilosk was approved as a lender by the Central Bank last year.

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