Perenna has secured a £200m warehouse facility from ABN AMRO Bank to help fuel its next stage of growth in the UK market.
The facility will enable Perenna to fund its growing mortgage pipeline and work towards the issuance of long-dated covered bonds.
Perenna will be the UK’s first covered bond bank. Unlike traditional high street banks, Perenna does not rely on customer deposits. Rather, mortgage lending is funded by the issuance of covered bonds, as is the case for mortgage banks across continental Europe such as Denmark. Through the issuance of covered bonds, Perenna will connect real money investors with the UK mortgage market.
Perenna received its full bank licence in September 2023 and launched to the wider market in January of this year. Perenna offers long-term fixed rate mortgages, where the rate is fixed for the whole term, and early repayment charges are no longer than five years; offering capital & repayment, interest only, and retirement interest only products, with terms up to 40 years.
Perenna plans to issue its first covered bond in 2024.
Hamish Peacocke, Co-Founder & Chief Capital Officer at Perenna, commented: “Over £3tn of pension and insurance monies have no efficient access to the UK mortgage market; Perenna’s covered bond platform unlocks this. This can only happen through the innovative funding model we have established which is widely used in European markets but not here in the UK.
“We’re delighted to be working with ABN AMRO Bank; they are a perfect partner given their extensive experience with long-term fixed rate mortgages across Europe, and the facility they have provided will help accelerate our origination and expand our funding capabilities further.”
