Heartland completes bond placement

Heartland Australia Group, the subsidiary company of Australian Securities Exchange-listed Heartland Group Holdings, has completed a senior bond placement of $75 million with an undisclosed Australian fixed income investor. 

The placement marks the third issuance under Heartland Australia’s Medium-Term Note program, bringing aggregate outstanding issuance to $220 million. 

The funds will be initially used to fund Heartland Group’s reverse mortgage loans, diversifying the funding base for the group, it said in an ASX update.

It will additionally be used to fund marketing efforts, assist with new product development and further the continued exploration of market opportunities, according to Heartland. 

Last year, the group announced that it had secured new funding for the growth of its Australian reverse mortgage business by completing a long-term $142-million Australian securitisation transaction.

Funded by offshore institutional investors, the reverse mortgage-backed syndicated loan securitisation (said to be the first of its kind), provided Heartland with funding with a 30-year final maturity.

It also increased its access to committed Australian reverse mortgage loan funding to $1 billion in aggregate to support growth and demand for the product.

Heartland Seniors Finance has grown its reverse mortgage market share in Australia to approximately 24 per cent. It has reportedly helped more than 18,000 seniors release more than $1 billion in equity over its 15-year history.

[Related: Heartland secures $250m funding facility]