Continuity of funding - Benefiting our brokers and borrowers

Brokers / 23rd October 2020

Raising funding at favourable terms is key for Premium Credit so you can present your customers with attractive repayment options. How do we do it? 

Premium Credit is not a bank, which means we are not allowed to fund ourselves through customer deposits. Instead, since 2012 we have been raising a large portion of our funding through a technique called securitisation. This consists in pooling together a number of customer loans into bonds, which are then traded on the stock exchange. These bonds are then bought by pension funds, insurance companies and banks as an investment.

We access the securitisation markets on a regular basis to continue funding our operations. Our last venture in that market was in mid-October; we launched a new bond issue with an objective of raising a fresh £300 million and enable even more of your customers to select premium finance as an attractive payment option.

The strength of our brand has shown through the challenging economic backdrop caused by Covid-19, Brexit and the upcoming US election, so we were confident that the Premium Credit name would be well received by the markets.

The venture was a complete success! The results exceeded our expectations, with over £1.2 billion of demand for our bond issue. As a result, we decided to increase the issuance to £400 million, building further lending capacity into 2021 and beyond.

This transaction was testament to both the high calibre of our underwriting and the services we provided; as well as the quality of the loans introduced by our partners, which is acknowledged by our investors.

The machine is fully fuelled, and we stand ready to provide even more loans to your customers. 

For more info about our funding programme, contact our Treasurer Philippe.Tapernoux@pcl.co.uk

Philippe Tapernoux
Head of Treasury and Investor Relations

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