Together completes its first commercial real estate MBS

Together Financial Services Limited has completed its first public small balance commercial real estate mortgage backed securitisation.

The £200m Together Asset Backed Securitisation 2021 - CRE1 plc (CRE1) is supported by a portfolio of first and second-charge mortgages secured against small value commercial, residential and mixed-use properties located in England, Wales and Scotland.

Some 58% of the underlying borrowers are self-employed. 

The issuance complements the group's existing four public residential mortgage backed securitisations, four private securitisations, senior secured notes and revolving credit facility.

Gary Beckett, group managing director and chief treasury officer at Together, said that this had added increased diversification to its funding platform. 

“This is our third successful public transaction since the pandemic began, [following] our £500m bond issuance in January and our £366m fourth RMBS in July.”

Gerald Grimes, group CEO designate at Together (pictured above), added: "The issuance adds further headroom as we continue to support UK businesses and shape our business for an exciting future.”

Citibank and HSBC acted as joint arrangers and were accompanied by Barclays and Natixis as joint lead managers.

In February, Together announced that its average monthly lending for the quarter ending 31st December 2020 reached £74.4m, a 70.6% increase on the previous quarter.

The lender also refreshed its commercial and personal finance product ranges last month. 

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