Paragon Bank launches £5 billion covered bond program

LONDON - Paragon Bank PLC, a subsidiary of Paragon Banking Group PLC, has established a £5 billion Covered Bond Programme, as confirmed on Monday. The programme has been regulated and approved by the Financial Conduct Authority (FCA) and positions Paragon Bank to issue bonds subject to favorable market conditions.

The establishment of the programme allows Paragon, with its considerable experience in securitisation, to diversify its wholesale funding options. The bank has completed 67 mortgage-backed transactions since 1987, indicating a strong track record in the sector.

Nigel Terrington, chief executive of Paragon, expressed enthusiasm about the new programme, noting that it adds Paragon to an exclusive group of 13 banks and building societies in the UK that are authorized as issuers of covered bonds.

The prospectus related to the Covered Bond Programme, dated Monday, February 24, 2025, is now publicly available. It details the terms and framework under which Paragon Bank will operate as the issuer. The document is accessible through the London Stock Exchange (LON:LSEG)’s website and will also be available in the National Storage Mechanism.

The information contained in the prospectus is specifically addressed to residents of certain countries, as specified within the document. It is not intended for use by individuals outside of these jurisdictions or who are not the intended recipients of the offer.

This announcement, based on a press release statement, emphasizes Paragon’s strategic move to expand its funding avenues and strengthens its position in the financial sector. The Covered Bond Programme is a significant step for Paragon Bank in its efforts to ensure robust funding mechanisms and maintain a stable presence in the market.

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