The mortgage and specialist loan provider said the £249 million Together Asset Backed Securitisation 2021 – CRE2 plc (“CRE2”) – had an advance rate of 95% and 79.75% of the issued notes were rated AAA(sf) by S&P and DBRS.

Gerald Grimes, group CEO designate of Together said: “We are delighted to announce the successful completion of our second small balance commercial real estate MBS, just three months after we issued the UK’s first transaction of this kind since the Global Financial Crisis.

“The £249 million CRE2 facility provides additional resource as we continue to extend our support to UK businesses.”

CRE2 is supported by a portfolio of first and second charge mortgages secured against small value commercial, residential and mixed use properties located in England, Wales and Scotland, with 40% of the underlying borrowers being self-employed.

Together explained 77.1% of the portfolio comprised commercial properties whilst 17.9% was mixed-use properties and the remaining 5.0% were residential properties.

CRE2 complemented the group’s existing five public mortgage backed securitisations, four private securitisations, senior secured notes and revolving credit facility.

Gary Beckett, group managing director and chief treasury officer at Together, said: “This is our fourth successful public transaction since the commencement of the pandemic, as we continue to add further strength and diversity to our funding platform.

“We would like to thank our funding partners who continue to show strong support for the Together growth story.”

Together recently announced its results for the quarter to 31 March 2021, showing a 68.5% growth in average monthly originations from the quarter to 31 December 2020 to £125.4 million, a closing loan book of £3.9 billion, and achieving a quarterly underlying profit before tax of £44.0 million.

Citibank acted as Sole Arranger and Sole Lead Manager.