Cartesian 5, as it is known, is the first publicly-placed Dutch prime RMBS issuance since January this year.
ARA Venn, which has assets under management (AUM) and active mandates in excess of £5 billion, also operates in the UK residential market, where it manages a government-guaranteed lending programme in the build-to-rent sector.
It is planning to launch a mortgage product for prime first-time buyers in the coming months.
The recent €300 million transaction brings the total outstanding issuance under the Cartesian Dutch RMBS programme to €1.4 billion, of which €1.2 billion relates to collateral originated by ARA Venn’s affiliated mortgage platform, Venn Hypotheken BV.
Building on its growing reputation and scale as well as the low levels of European ABS issuance since March, the deal capitalised on significant investor demand for high-grade credit products to secure over €1.5 billion in orders (over 5x covered) for the AAA bonds.
The AAA notes, which eventually priced at three-month Euribor rate plus 55bps, was more than 15bps inside the initial price guidance.
Cartesian 5 also comprised three mezzanine tranches of risk. The deal was rated by Fitch and DBRS. BNP Paribas, Citi and SMBC acted as joint lead managers.
Gary McKenzie-Smith, managing partner at ARA Venn, said: “One of the key goals we set for Cartesian 5 was to build a more diverse investor base that would help to support liquidity in the secondary market.
“We are delighted to have achieved that as it will help the wider Cartesian programme as well as our execution on this deal. We look forward to the continued growth of this important investment strategy, and to taking our experience and track record into other residential mortgage markets.”
Following a three-day virtual roadshow to a broad investor base, 31 new and existing investors across a range of sectors and jurisdictions participated in the final allocation.
Marc de Moor, CEO of Venn Hypotheken, said: “We are thrilled with the outcome of this issuance. Not only does this underline the robustness of our platform both in terms of asset quality and funding diversification, but also illustrates the execution power of the ARA Venn team and JLMs even in these troubled economic times.”
