Paragon Banking Group has completed a new securitisation, which contain £899m of prime buy-to-let (BTL) mortgage assets.

The latest securitisation, Paragon Mortgages (No.29) (PM29), is estimated to create £747m of AAA rated senior bonds for the group.

Specialist bank Paragon is expecting the senior bonds to be used as collateral for the Bank of England repo funding facilities and are also available as security for commercial repo transactions with other institutions.

The Paragon Banking Group, which is listed on the London Stock Exchange as a constituent of the FTSE 250 index, is one of the UK’s largest providers of mortgages, savings accounts, and business finance. It generated revenues of £393m last year.

Commenting on the latest announcement, Paragon chief executive, Nigel Terrington, said: “This transaction, Paragon’s 67th securitisation, has been fully retained and further enhances our contingent funding capacity, continuing our strategy to diversify sources of funding.”

The arrangers for the securitisation were Santander Corporate & Investment Banking and BofA Securities.

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