£3.6 billion raised in two innovative transactions
In December 2017 and December 2018, on behalf of the Department for Education (DfE), UKGI successfully completed two sales of part of the Plan One English student loans book, raising a total of £3.6bn. As well as ensuring value for money for the taxpayer, the two transactions were designed in such a way to ensure the position of all borrowers would not change as a result of the sale.
Structured as a multi-tranche securitisation backed by loans with income contingent repayments, these transactions launched a new asset class in the capital markets and attracted significant demand. The capital structure included 3 rated bonds and 1 unrated, with unique and innovative characteristics tailored to the long-term nature of the underlying loans, each designed to appeal to specific pools of capital.
UKGI’s model of combining public and private sector expertise produced a multi-disciplinary transaction team uniquely placed to deliver this complex and innovative project.