AFG Securities upsizes RMBS transaction

The wholly owned subsidiary and in-house lending division of Australian Finance Group (AFG), AFG Securities Pty Ltd, has successfully priced its AFG 2021-1 Trust, a residential mortgage-backed securities (RMBS) issue.

The issue has grown from $500 million to $750 million.

The $750 million issue of Australian prime residential mortgages is AFG Securities’ 11th issue since 2013, taking the total paper issued to the market by AFG Securities to $4.825 billion.

The transaction is due to settle on Wednesday (12 May 2021).

AFG CEO David Bailey said that support was received for the transaction from both domestic and international investors.

Mr Bailey commented: “We are very pleased to be able to upsize the transaction from $500 million to $750 million with the support of new and returning investors.

“AFG Securities mortgages continue to perform well, and the broker proposition in the Australian home lending market has never been stronger.

“AFG Securities residential home loan products have both depth and breadth, and the market has responded," Mr Bailey continued.

“We are very pleased with the upsizing of this transaction and look forward to continuing to deliver a competitive range of home loans to our brokers and their customers and sound investment opportunities to the RMBS market,” he concluded.

NAB and ANZ acted as joint lead managers on the transaction.

[Related: AFG Securities issues first non-conforming RMBS]