Alantra acts as sole arranger for Nottingham Building Society on its first public RMBS

Feb 2025

Sell-side advisory

Value £400mn

London – Alantra has acted as Sole Arranger for Nottingham Building Society (NBS) on its debut STS public Residential Mortgage-Backed Security (RMBS). The transaction is backed by a £400 million performing portfolio of UK residential mortgage loans.

The transaction is comprised of three tranches, with the senior note rated AAA by Moody’s and Fitch. The senior note was successfully placed in the public market, while NBS retained the junior notes. Investor demand was strong, achieving 1.7x coverage of the Class A target note size and pricing at 55bps. Class A credit enhancement is supported by the subordination of Z Notes and a general reserve fund, funded through the issuance of Class X Notes, equating to 1.50% of the principal amount of Class A Notes. The transaction also benefits from a balance-guaranteed fixed-to-floating interest rate swap with Lloyds Bank Corporate Markets (who also acted as the Lead Manager).

Andrew Jenke, Managing Partner & Head of FIG International at Alantra, said: “This marks Alantra’s first public securitization issuance as sole arranger and its second public securitization in the past two months. The transaction further strengthens our presence in the UK public securitization market and reinforces our ability to foster long-term client partnerships.”