Belmont Green, parent company of Vida Homeloans, has issued its first European residential mortgage-backed security (RMBS) of the year.

Named Tower Bridge Funding 2021-2, it raised £400m from both owner-occupied and buy-to-let mortgages.

It was supported by Santander, Barclays, and Bank of America.

Attracting over £1bn of demand, Belmont Green managed to price its senior notes 72 basis points over the sterling overnight index average.

It adds that it became the first UK issuer to publicly distribute an ESG questionnaire, as well as disclosing energy performance certificate ratings on its portfolio.

Belmont Green chief executive Anth Mooney says: “This latest RMBS deal and our resulting lower cost of funding allows Vida to help more customers and in the longer term, supports our growth ambitions as we work towards seeking authorisation as a bank from the prudential regulation authority.

“We welcome the increasing focus from investors on ESG matters, as they are a fundamental consideration in the way we run and grow the business.”

And chief finance officer John Rowan says: “The pricing of and strong support for our latest securitisation transaction clearly demonstrates investors’ recognition of the strength of our mortgage book and business.

“We are happy to welcome more investors to the platform and are encouraged by the strong demand to invest in Belmont Green transactions.”