Paragon Bank launches £5 billion Covered Bond Programme

LONDON - Paragon Bank PLC, a subsidiary of Paragon Banking Group PLC, has established a £5 billion Covered Bond Programme, which has been regulated and approved by the Financial Conduct Authority (FCA). The bank, with a history of 67 mortgage-backed transactions since 1987, is now poised to issue bonds under this new programme when market conditions are favorable.

The programme aims to diversify Paragon’s wholesale funding options and positions the bank among a select group of only 13 banks and building societies in the UK authorized to issue covered bonds. Nigel Terrington, Chief Executive of Paragon, expressed enthusiasm for the launch, highlighting it as a strategic move to enhance the bank’s funding avenues.

The prospectus for the Covered Bond Programme, dated today, details the terms of the £5 billion issuance with Paragon Bank as the issuer. The document is publicly accessible and has been submitted to the National Storage Mechanism for future inspection.

The establishment of the Covered Bond Programme is a significant step for Paragon Bank, reflecting its solid experience in securitization and its stature in the financial sector. The programme’s success will depend on market conditions and investor reception, which remain to be seen.

Investors and interested parties are advised to review the prospectus, especially those residing in the countries specified within, as the information is targeted at a specific audience and is not intended for general public use. The bank emphasizes the importance of ensuring eligibility before relying on the prospectus information.

This news article is based on a press release statement from Paragon Bank PLC and has been provided by RNS, the news service of the London Stock Exchange (LON:LSEG). The FCA has approved RNS as a Primary Information Provider in the United Kingdom (TADAWUL:4280).

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