RESIMAC prices NZ$250m RMBS

Homeloans Limited’s wholly owned New Zealand subsidiary RESIMAC Home Loans has priced a multimillion-dollar residential mortgage-backed security, the second issuance it has offered since 2012.

RESIMAC has priced a NZ$250 million (AU$225.73 million) RMBS transaction — RESIMAC Versailles 2017-1.

This marks RESIMAC Home Loans’ second offering into the New Zealand market since the business launched in 2012.

The transaction, which saw bids from nine investors, is a fully rated pass-through capital structure and comprises an underlying pool of prime and non-conforming New Zealand residential mortgage assets.

The senior AAA note priced at +125bps over 1 month BKBM and the transaction is the only public issuance of RMBS into the New Zealand market this year.

Westpac Banking Corporation (New Zealand Branch) and Bank of New Zealand acted as co-arrangers and joint lead managers.

Mary Ploughman, joint CEO at RESIMAC, commented: “The New Zealand business has continued to grow since launch[ing] in 2012 and this transaction is vital to the RESIMAC Home Loans business model, allowing capacity and pricing support for new business originations.

“The success of the transaction can also be attributed to the high-quality originating and underwriting policies and the robust servicing processes of the business, utilising RESIMAC Home Loans’ proprietary servicing platform.”

Ms Ploughman concluded: “RESIMAC Home Loans recognises the key role of investors as the term funding source for the business and we were pleased by the support of both long-standing and new investors into the program.”

[Related: Non-bank prices $1bn RMBS transaction]

 

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Annie Kane

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