Irish financial services company Dilosk Limited is marketing 206 million ($233 million) of securities backed by Irish residential mortgages.
The issuer's debut securitization, called Dilosk RMBS No. 1, will be rated by Standard & Poor’s and DBRS. The offering is part of the Dilosk’s “long-term growth plan targeting new lending with a particular focus on the Irish residential investment (or buy-to-let) property market," according the issuer's website.
Lending is expected to commence in the third quarter of 2015 through the ICS Building Society lending platform, which Dilosk acquired in September 2014, according to a DBRS presale report. Borrowers will be sourced via a nationwide network of brokers and origination will be provided through secured warehouse facilities and eventual securitization.
Deutsche Bank is the lead manager on the deal. Investor roadshows will commence on May 14, 2015 in the U.K. and other European countries.
The securitised portfolio consists of 1,939 loans and is on a weighted-average basis 5.4 years seasoned, with 59% of the portfolio originated from 2010 onwards. The weighted-average loan-to-value (WALTV) of the portfolio is 49.61%.
The mortgages are concentrated in Dublin (53.28%), and a relatively low percentage (12.36%) finance the acquisition of investment properties. “The underlying loans have performed extremely well through the downturn in the Irish housing market with just two borrowers being more than three months in arrears in the last three and a half years from 31 March 2015,” stated DBRS.
DBRS has assigned a preliminary AAA’ rating to the class A notes , which benefit from credit support of 22.5%; an AA’ rating to the class B notes with credit support of 10.5%; an A’ rating to the class C notes with credit support of 7.5%; and a BBB’ rating to the class D notes with credit support of 5.5%.
S&P has yet to published its preliminary ratings on the bonds.