BoI taps market with UK mortgage-backed deal
BANK of Ireland has begun a refinancing of £2.27bn of its UK-branded performing residential mortgages.
Refinancing of the UK assets is largely internal but will include issuing bonds to third-party investors backed by a £250m to £350m portion of the mortgages.
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The bulk of the deal involves the bank securitising mortgages but retaining the bonds issued against those 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 that 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 lets lenders raise funds by borrowing against mortgages they hold.