ColCap UK and Molo Complete £300M Securitization

ColCap Financial UK Limited and Molo Tech Limited have completed their first securitization, ‘Molossus BTL 2024-1’.

The securitization totals £300 million of prime UK buy-to-let mortgage loans “in England and Wales.”

It is a Residential Mortgage-Backed Security (RMBS) transaction.

ColCap is a privately-owned, Australian non-bank lender “specializing in residential mortgage loans. Founded in 2006, it has a loan portfolio in excess of AUS $14.0 billion.”

ColCap invested in Molo, a digital buy-to-let lender, in February 2023 via its UK subsidiary, ColCap UK.

The diversified pool of underlying mortgage assets “has generated significant interest and strong investor demand.”

The securitization received a AAA(sf) rating “from global credit rating agencies Fitch and S&P Global Ratings respectively.”

The ratings were for 87.5% of the pool and the senior tranche “was priced at 0.95% over SONIA.”

Macquarie Bank and Standard Chartered Bank acted “as Joint Arrangers and Macquarie Bank, Standard Chartered Bank, and Citigroup acted as Joint Lead Managers.”

ColCap UK’s Treasurer, Paolo Tanca, commented:

“This deal represents a significant milestone for us, showcasing our ability to structure and execute successful RMBS transactions in the UK market. We are excited about the opportunities for future growth and expansion.”

Echoing this sentiment, ColCap UK’s Executive Director and COO, Esther Morley added:

“Today’s successful RMBS announcement demonstrates growing confidence in the UK property market and in the quality of Molo’s buy-to-let portfolio. This strategic move with Molo is the first of many and demonstrates our commitment to innovation. It also marks the beginning of a new chapter for ColCap in the UK market. It sets the stage for further collaborations and growth opportunities, benefiting both our UK operations and our broader global presence, including ColCap Australia.”

Commenting on the achievement from Molo’s perspective, CEO Matt Kimber, stated:

“The success of this RMBS highlights the strength of Molo’s mortgage lending capabilities and the credit quality of our originations. It enables us to continue empowering landlords with accessible and innovative lending solutions while reinforcing our position as a leader in the buy-to-let mortgage market.”

As covered, ColCap is “a Sydney-headquartered privately owned leading non-bank lender specialising in residential mortgage loans.”

ColCap was founded in 2006 and currently “has a loan portfolio in excess of AUS $14.0 billion.”

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