Amicus’ mortgage backed security has a scheduled maturity of July 2018. It comprises of a portfolio of short-term loans with a weighted average loan to value of 60% ranging from 6-18 months.
John Jenkins, chief executive of Amicus, said: “This is a first for Amicus and we believe a first for the UK market. We are in a strong position to offer attractive risk adjusted returns driven by the quality of our loan portfolios and our track record in underwriting and risk management.
“The UK mortgage market is seeing a sustained and growing appetite for short-term property finance driven by the tightening of mainstream bank underwriting requirements; recent changes to planning laws; and the inability of some lenders to act sufficiently quickly to respond to demand.
He added: “There is clear investor demand for this type of short-term mortgage-backed security. Many institutions are increasing their focus on the alternative finance sector as a means of enabling enhanced returns without taking on large risks. Given the continued appetite for short-term property finance, we anticipate significant growth in demand for short term syndication of this class of debt through bond issuance.
“Our intention is to use this successful fund raising to drive our growth ambitions in the short-term lending market which as a whole has grown to an estimated volume of almost £3bn annually, according to industry data.”
Brookland Partners LLP and HSBC were advisers and agents to Amicus. Amicus is owned by Omni Partners LLP, the London-headquartered investment manager.
