Friday 14 December 2018

Dilosk closes deal to raise €286m by borrowing against Irish residential mortgages

Strong investor demand saw approximately €500m offered, almost double the sum sought. Stock image
Strong investor demand saw approximately €500m offered, almost double the sum sought. Stock image

Donal O’Donovan

Mortgage lender Dilosk has closed a deal to raise €286m on the bond markets by borrowing against a pool of Irish residential mortgages.

Strong investor demand saw approximately €500m offered, almost double the sum sought. In the end, the bond deal was backed by 23 institutional investors.

NatWest Markets acted as sole arranger and NatWest Markets and Barclays Bank were joint lead managers for the transaction, Dilosk said.

Mortgage backed bond deals allow lenders to raise new finance by borrowing against the income and collateral of a pool of mortgages. 

Dilosk also said it had completed the acquisition of a €182m portfolio of residential mortgages which were originated by Leeds Building Society, a bank that has since left the Irish market.

The deal adds 789 mortgages to Dilosk’s total portfolio. They are owner occupier, primarily performing, home loans.

Online Editors

Business Newsletter

Read the leading stories from the world of Business.

Also in Business