Lloyds TSB Corporate Markets launched its latest SME CLO. This is the bank's fourth balance sheet securitization from its commercial loan book.

The deal, dubbed Doncaster Gold, is a £1 billion synthetic securitization of property loans. The CLO has been privately placed with selected institutional investors and forms part of the bank’s planned strategy of distribution to create greater balance sheet efficiency.

Lloyds TSB said it intends to continue distributing assets in support of its core client franchise despite the current market dislocation. This not only enables the bank to remain the lender of record for the underlying loans but also allows it to maintain a direct relationship with its customers.

“This latest CLO reinforces the fact that investors recognise the strength and quality of the Lloyds TSB loan book," said Mark Grant, head of debt capital markets at the bank. "It also demonstrates Lloyds TSB’s continued capability to bring this type of transaction to the market.” 

The Doncaster Gold CLO follows the bank’s completion of a number of other similar transactions in recent years. The list includes the £1 billion Ascot Black CLO in October 2006, followed by the increase of the same deal to £1.5 billion in June 2007 and the £3 billion Goodwood Gold CLO in November 2007.

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