Bank of Ireland taps market with UK mortgaged backed deal
BANK of Ireland has begin a refinancing of £2.27bn of Bank of Ireland UK-branded residential of performing mortgages.
Refinancing of the UK assets is largely internal but will include issuing bonds to third party investors backed by a £250m to £350m bundle of the mortgages.
The bulk of the deal involves the bank securitizing mortgages but retain the bonds issued against the assets for contingent liquidity purposes.
Lloyds Bank is arranger and lead manager on the deal and Bank of America Merrill Lynch is also a lead manager. The deal is expected to be rated in the top AAA category and is backed by a portfolio of performing mortgages.
The bank said the deal will have no impact on customers. Bank of Ireland will continue to service the mortgage accounts and all terms and conditions remain the same, it said.
Securitisation allows lenders to raise new funds by borrowing against the value and income of mortgages they have issued.