Powered by MOMENTUM MEDIA
subscribe to our newsletter

AFG prices $500m RMBS

The mortgage aggregator has announced that it has successfully priced a $500 million RMBS issue after receiving “strong oversubscription”.  

The Australian Finance Group (AFG) has priced a $500 million residential mortgage-backed security (RMBS) issue, which the aggregator said was “upsized” from $350 million off the back of “strong demand” across the transaction.

According to AFG, the 2019-1 issue represents the largest RMBS transaction since its first deal in 2013 and the first time the deal has been upsized.

Following the announcement, AFG CEO David Bailey said: “We are delighted in this outcome. Increasingly, investors are recognising that AFG’s value proposition as an issuer in the Australian RMBS market is unique and this has fortified support, driving oversubscription from a broadened investor base.

“As both an originator and a distributor of mortgages, AFG holds an enviable position in the Australian home loan marketplace that affords us a high level of insight into mortgage behaviours and trends. This expertise helps frame our credit policies and lending practices, underpinning our diversified earnings business model.”

Advertisement
Advertisement

Mr Bailey noted the growth of AFG’s overall business, reflected in the group’s latest financial results, in which AFG’s underlying profit remained stable, withstanding weakness in credit and housing market conditions.

“Our AFG business continues to expand, with growth driven by considered product improvements and a measured approach to AFG’s expanding product range,” Mr Bailey added. “The historical performance of our loan book is in the upper echelons of all issuers.”

He continued: “At a time when some may argue, incorrectly in my opinion, that broker-originated loans are poorer performing, it is opportune to point out that here is an exceptionally performing loan book, which is 100 per cent originated by brokers.”

The CEO concluded by thanking investors and mortgage brokers for their support.

“On behalf of AFG, I would like to express my thanks to our ongoing investors for their continued support and welcome our new investors,” he said. “We appreciate the strong show of support and confidence in our business strategy.”

PROMOTED CONTENT


Mr Bailey concluded: “It is also important to acknowledge our brokers, who have demonstrated confidence in our products by recommending them to our clients.”

AFG’s latest announcement follows its partnership with comparison website iSelect.

The aggregator’s joint operational agreement with iSelect will commence on 1 April.

AFG has said that the agreement will help “provide an improved customer experience and to further enhance the provision of a digital home loan service to Australian borrowers”.

[Related: Non-banks to ‘dominate’ in 2019: S&P]

AFG prices $500m RMBS
AFG
mortgagebusiness

Latest News

Land values across NSW increased by 24 per cent in the last 12 months to 1 July 2021, according to a new report by the NSW Valuer General. ...

Unit and private build commencements collapsed during the September quarter, marking the first unanimous fall in over two years. ...

New Zealand’s Treasury has confirmed the appointment of its new chief economic adviser, nabbed from a big four bank. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

Do you think APRA's bank buffer changes will see more borrowers use non-banks?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.