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Firstmac completes largest RMBS issue

Non-bank lender Firstmac has priced its largest residential mortgage-backed securities issuance at $1.4 billion.

Firstmac has announced that it has completed its $1.4 billion residential mortgage-backed securities (RMBS) issue – it’s largest one to date.  

Kim Cannon, managing director at Firstmac, said 25 institutions invested in the oversubscribed issue.

Further, more than half of the institutions were based overseas, including in the UK, Singapore and Japan.

According to Firstmac, the RMBS issue was completed at 1.23 per cent over the bank bill swap rate, which was “consistent” with Firstmac’s $1 billion issue in October 2018.

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The latest issue accounts for nearly half of the non-bank lender’s annual funding program of $3 billion and brings the total amount of RMBS issued by the Firstmac since 2003 to more than $24 billion.

“This is a great vote of confidence from foreign investors in our business and in the Australian property market more broadly,” Mr Cannon said.

“The cloud of uncertainty that was hanging over the Australian property market before the election has been lifted and Firstmac is well positioned to benefit.”

Firstmac said its loan book has increased by 10 per cent from $10 billion at 30 June 2018 to $11 billion currently, which was attributed to growth within the third-party and proprietary channels.

“There are many ingredients that go to our successful funding program, but one of the most important is the increasing recognition by the market of our ‘premium prime’ market segment,” Mr Cannon said.

[Related: Pepper, Mortgage House RMBS issuances get rated]

Firstmac completes largest RMBS issue
Firstmac
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