Propel secures strong investor demand in £306m debut securitisation

Equipment finance lender Propel Finance has successfully completed its debut public securitisation, raising £306 million in a transaction that drew significant interest from global investors.

The issuance, completed through Propel’s Velocity 2026-1 securitisation programme, was rated by S&P Global and Fitch, with the senior Class A notes achieving a coveted AAA rating. These notes accounted for 78.5% of the overall deal. The transaction also received PCS verification for Simple, Transparent and Standardised (STS) status, enhancing its appeal to institutional investors.

Investor appetite proved exceptionally strong, with the final order book exceeding £800 million – approximately 2.7 times oversubscribed – and attracting participation from 17 investors worldwide. The demand came despite recent volatility in financial markets, underlining confidence in Propel’s platform and performance.

The milestone marks another step in Propel’s rapid expansion. Over the past five years, the lender has grown its loan book by 600%, supporting both SMEs and larger corporates investing in capital equipment. The securitisation follows a series of funding initiatives completed last year, including the expansion of private warehouse facilities, a forward-flow agreement, and a mezzanine funding line.

Chief Executive Mark Catton welcomed the achievement, highlighting both investor confidence and the strength of Propel’s business model.

“It’s brilliant to be able to complete our debut securitisation, and delighted with the huge interest shown by some of the most recognised investors globally,” he said. “The final book closed at more than £800m. We achieved this outcome despite the recent market volatility. This is a great reflection on the Propel team, the quality of our platform, and first-class standards.”

He added that diversified funding remains central to the company’s growth strategy: “We have amazing commercial partners who trust us with their customers and give us access to significant growth. Depth and diversification of funding help us to capture that growth successfully. It helps us to support thousands of UK SMEs investing in capital equipment.”

The transaction was jointly arranged by Bank of America and Citi, with legal support provided by Hogan Lovells. Propel was advised by Simmons & Simmons and Interpath.