ColCap UK and Molo complete £300m securitisation

By Gloria Methri

ColCap Financial UK Limited and Molo have completed their first securitisation, Molossus BTL 2024-1. The securitisation 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 specialising in residential mortgage loans. Founded in 2006, it has a loan portfolio of more than AUS $14.0 billion. In February 2023, ColCap invested in Molo, a digital buy-to-let lender, via its UK subsidiary, ColCap UK.

The securitisation received an 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, said, “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 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.”