Linklaters advises Paragon Bank PLC on the first UK regulated covered bond programme with a cover pool made up entirely of buy-to-let loans

Linklaters has advised Paragon Bank PLC, a leading UK specialist lender and savings bank, on the establishment of its £5bn regulated covered bond programme.

The programme is the first UK regulated covered bond programme with a cover pool made up entirely of prime buy-to-let loans, as opposed to the customary owner-occupied loans. The Linklaters team advised Paragon Bank PLC through the process of obtaining FCA approval for the programme and on the initial issuance of £500m covered bonds.

The programme will allow Paragon Bank PLC to reach new investors and access the market quickly and efficiently.

Lucy Sidey commented:

"We are delighted to have advised Paragon on setting up their regulated covered bond programme. Paragon’s programme makes it the fourteenth UK institution to be admitted to the UK Regulated Covered Bonds Register, amidst many very long-standing players, and the first new entrant since 2018. We are excited to have been involved in assisting the Paragon team in bringing the first buy-to-let cover pool to market.”

The Linklaters team was led by partner Lucy Sidey, alongside counsel Morag Russell, managing associate Nikki Lewis and associate Victoria Munt.