ICS Mortgages parent, Dilosk, has raised €230 million on international bond markets by refinancing a portfolio of buy-to-let home loans.
The non-bank lender said the offer – known as a residential mortgage-backed securitisation (RMBS) – was “significantly oversubscribed, allowing pricing at the tightest levels to date for a Dilosk Buy to Let deal”.
Five classes of bonds were included in the deal, which Dilosk said it expected would be rated from AAA to BB+. The group said interest in one tranche of the bonds – accounting for the bulk of the money raised and expected to be rated AAA – was 3.4 times oversubscribed. which allowed the group to seek a higher price than initially anticipated.
“We are very pleased to complete our successful 11th securitisation which highlights the market’s continued confidence in our business model, our asset quality, and our long-term growth strategy,” Dilosk cofounder and chief executive Fergal McGrath, said.
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He said the strong investor demand underlined the strength of the Irish mortgage market, especially in the buy-to-let sector. ICS Mortgages is a specialist lender focusing on owner-occupier borrowings, bridge loans and buy-to-let residential mortgages in Ireland.
Mr McGrath reported “a strong start to the year with a 45 per cent increase in buy to let mortgage applications compared to the same period last year”, adding that Dilosk expected proposed rent reforms to increase the supply of properties in that segment of the market “and stimulate further interest, especially from professional landlords”.
Dilosk said it had now raised €3.2 billion across 11 mortgage-backed securitisation deals since it was established in 2013.
The company started by buying the ICS Mortgages brand and an initial portfolio of €223 million of loans from Bank of Ireland in 2014. It has been offering buy-to-let loans since 2016 and ventured into the owner-occupier sector in September 2019.
The group said the latest transaction was led by Nataxis, which acted as arranger, and Bank of America.
