Thursday 25 May 2017

Ptsb to raise mortgage cash in bond market

Permanent TSB. Photo: Collins
Permanent TSB. Photo: Collins
Donal O'Donovan

Donal O'Donovan

Permanent tsb is planning to borrow €690m in bond debt backed by Irish home loans.

The bank has mandated Morgan Stanley as sole arranger for the transaction with Citibank, and Deutsche Bank acting longside the US giant as joint lead managers.

A road show is being held to market the bonds to potential investors.

The new bonds will be backed by a bundle of performing Irish home loans, none of which is more than one month in arrears.

The home loans behind the bond are low risk, all are owner occupier loans and the average loan to value ratio is 60pc.

Mortgage securitisation deals allow banks to access extra cash for new loans, by borrowing against loans already made. Before the crash such deals were a mainstay of the market, but they have slowed to a trickle.

Permanent tsb has not issued a deal since 2013 and no Irish bank has placed residential mortgage backed bonds with investors since May 2015.

Irish Independent

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