OneSavings Bank plc
("OSB" or the "Company")
Confirmation of disposal of economic interest in Rochester Financing No. 1 plc (the "Transaction")
Further to our announcement on 26 May 2016, OneSavings Bank confirms that it has now agreed the sale of its entire economic interest in the Rochester Financing No.1 plc securitisation (Rochester 1) for a total consideration of £104m. Morgan Stanley agreed to purchase the C, D, E notes on 26 May 2016, and the F notes and Residual Certificates were sold in an auction which closed today, 3 June 2016. The transaction generated an exceptional pre-tax gain of c.£35m1. If the Transaction had occurred on 31/12/2015 the Company's CET1 ratio would have increased by c.1.51 percentage points.
Background on Rochester
Rochester 1 was issued on 16 October 2013 and securitised approximately £376m of acquired mortgages sold to it by OSB. At the time of issuance, Rochester 1 sold the three most senior classes of notes (A1, A2 and B) to third-party investors and OSB purchased the four most junior classes of notes (C, D, E and F) as well as the Residual Certificates. The Transaction results in the de-recognition of the securitised mortgages and, as a liability, the senior most notes (A1, A2 and B) from the OSB Group balance sheet.
1 subject to finalisation of fees
OneSavings Bank plc
Alastair Pate t: 01634 838 973
Robin Wrench / Simone Selzer t: 020 7404 5959
About OneSavings Bank plc
OneSavings Bank plc ('OSB') began trading as a bank on 1 February 2011 and was admitted to the main market of the London Stock Exchange in June 2014 (OSB.L). OSB joined the FTSE 250 index in June 2015.
OSB is a specialist lending and retail savings group authorised by the Prudential Regulation Authority, part of the Bank of England, and regulated by the Financial Conduct Authority and Prudential Regulation Authority.
OSB primarily targets underserved market sub-sectors that offer high growth potential and attractive risk-adjusted returns in which it can take a leading position and where it has established expertise, platforms and capabilities. These include private rented sector Buy-to-Let, commercial and semi-commercial mortgages, residential development finance, bespoke and specialist residential lending and secured funding lines. OSB originates organically through specialist brokers and independent financial advisers. It is differentiated through its use of high skilled, bespoke underwriting and efficient operating model.
OSB is predominantly funded by retail savings originated through the long established Kent Reliance name, which includes online and postal channels, as well as a network of branches in the South East of England. Diversification of funding is currently provided by securitisation and participation in the Funding for Lending Scheme.