ColCap prices $1.5bn RMBS

Columbus Capital (ColCap) has announced the pricing of its $1.5-billion prime residential mortgage-backed security (RMBS), Triton 2021-1.

The transaction is the Australian market’s first RMBS in 2021 and represents ColCap’s largest issuance to date.

The prime lender said the RMBS had attracted strong local and international demand for the transaction, including from major banks and institutional investors, leading it to close oversubscribed.

It suggested that this reflects “continued investor confidence” in the high-quality asset portfolio underpinning the Triton RMBS program.

ColCap also stated that pricing on the senior amortising note was the lowest achieved by non-ADI issuers since the global financial crisis.

The transaction is ColCap’s 19th prime RMBS issuance and takes the company’s total issuance to over $10 billion, with $3.9 billion issued since the beginning of 2020. 

ColCap CEO Andrew Chepul said: “We are proud to lead the Australian RMBS market out of the blocks in 2021, with ColCap’s largest and lowest-priced issuance to date.

“ColCap is one of Australia’s fastest-growing non-bank prime lenders, and this $1.5-billion issuance, which takes our total prime RMBS issuance to over $10 billion in our 14-year history, positions our business very strongly for further growth in 2021.”

ColCap’s treasurer, David Carroll, said: “The strong demand for this transaction enabled ColCap to both upsize and reduce pricing on all tranches. This shows investors remain highly confident in the quality and performance of the assets underpinning our Triton RMBS program, and the track record of ColCap in the Australian RMBS market.”

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