ColCap Financial and Molo complete second securitisation of £300 million

ColCap Financial Limited (ColCap Financial) and Molo Tech Limited (Molo), the specialist mortgage lender for UK and overseas borrowers, are pleased to announce the completion of the second securitisation in the Molossus programme, Molossus BTL 2025-1, which follows the success of the inaugural Molossus BTL 2024-1 securitisation in May 2024.

The Molossus BTL 2025-1 securitisation comprises £259 million of prime UK buy-to-let mortgage assets in England and Wales, originated under ColCap Financial’s lending UK brand Molo, in addition to £41 million of pre-funding. The diversified pool of underlying mortgage assets generated strong investor demand, demonstrating investors’ confidence in the asset pool. The proceeds of the transaction will allow ColCap Financial and Molo to further accelerate origination growth.

Class A to F received credit ratings from Fitch Ratings and S&P Global Ratings. The AAA tranche priced at 0.83% over SONIA, reflecting continued interest in high-quality UK mortgage-backed securities. This follows Fitch Ratings upgrading Molossus BTL 2024-1 PLC class B, C, D, E and X notes, while affirming the rest, and removing all ratings from Under Criteria Observation.

ColCap Financial UK Limited, acts as the risk retention holder and will retain a material net economic interest of 5% in the transaction.

Macquarie Bank and Standard Chartered Bank acted as Co-Arrangers and Macquarie Bank, Standard Chartered Bank, Lloyds Bank, and MUFG acted as Joint Lead Managers.

ColCap Financial’s UK Treasurer, Paolo Tanca, commented, “This second securitisation reflects the disciplined management and robust performance of our mortgage portfolio. The strong investor participation and attractive pricing highlight the market’s confidence in our strategy”

Echoing this sentiment, ColCap Financial’s UK and Molo CEO, Matt Kimber, added “This transaction is the result of consistent growth in the business across the last 12 months, during which we have attracted new warehouse partners, established a strategic lending partnership with a bank, and achieved record Molo originations. Our second securitisation delivers on our promise to become a programmatic RMBS issuer and sets us up for further growth in 2026.”

ColCap Financial is a leading Australian-headquartered non-bank lending group with over A$19 billion in assets under management in Australia and the UK. With a vision to deliver financial opportunities for lending customers, distribution partners and financial investors across global markets, ColCap Financial brings together deep expertise in residential property lending and funding with proven product innovation capabilities, making it a financial partner built to help people make financial possibilities happen.

ColCap Financial incorporated its UK entities in 2022 and commenced UK mortgage lending in December 2022.

For further information about ColCap Financial in the UK please visit www.colcap.co.uk

Molo is a specialist mortgage lender for both UK and overseas borrowers. Since launching in 2018, Molo has led change in the UK mortgage market, processing over £2 billion in mortgage applications.

Molo is a wholly-owned subsidiary of ColCap Financial UK Limited.

For further information about Molo Finance please visit www.molofinance.com