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La Trobe prices eighth $750m RMBS

The non-bank lender has announced that it has successfully priced its eighth $750 million residential mortgage-backed security.

La Trobe Financial has announced that despite “market volatility” and “high levels of market supply”, it has priced its eighth $750 million residential mortgage-backed security (RMBS).

The arranger of the deal was Macquarie Bank, while joint lead managers included the Commonwealth Bank of Australia, The Hongkong and Shanghai Banking Corporation, National Australia Bank, Natixis and United Overseas Bank.


La Trobe Financial stated that it will pay:

  • 85 basis points over the bank bill swap rate (BBSW) on $135 million of A1S notes, which have a weighted average life of 0.20 years
  • 142 basis points over the BBSW on $390 million of A1L notes, which have a weighted average life of 2.71 years
  • 185 basis points over BBSW on $90 million of A2S notes, which have a weighted average life of 1.30 years
  • 220 basis points over BBSW on $38.25 million of A2L notes, with a weighted average life of 3.98 years
  • 45 per cent to 8.00 per cent on B to F notes

According to the non-bank, investor support for La Trobe Financial was evident in strong levels of oversubscription across all notes.  

The non-bank claimed that continued growth in support from global investment houses in Asia, the US and Europe reflected the depth of “positive investor sentiment both to La Trobe’s investment program and the Australian credit and RMBS markets more broadly.

The raising of $750 million via its Capital Markets Trust 2019-1 was up from the initial $500 million sought at launch.

Following the announcement, Martin Barry, La Trobe Financials’ chief corporate treasurer, commented: “We are very pleased to have priced our eighth RMBS transaction following a successful international and Australian roadshow.

“We welcome three new large global investors to our already 33 investor-strong RMBS program and are delighted by the strong interest we have received on this transaction both offshore and domestically as we build on our diverse investor base.

“We remain good stewards of other people’s capital and this enables us to obtain and maintain the trust of our clients – this is the real asset of the company.”

Mr Barry added: “With this RMBS transaction, we achieved competitive pricing notwithstanding increased levels of market supply and note participation from six domestic and 11 international investors from Europe, USA and Asia, including Japan.”

[Related: Bluestone completes $400m RMBS]

La Trobe prices eighth $750m RMBS

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