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Non-bank lender issues $1.5bn RMBS

A prime residential lender has announced the pricing of one of its largest prime residential mortgage-backed securities to date.

ColCap (formerly Columbus Capital) – a non-bank prime lender specialising in Australian residential mortgage lending through its wholesale lending brand Origin Mortgage Management Services and its online direct-to-consumer brand Homestar – has priced a $1.5 billion residential mortgage-backed security (RMBS).

The Triton 2021-2 equals the lender’s largest issuance, which was priced in February 2021.

According to the lender, the three-year tranche was priced at 70 basis points above the one-month Bank Bill Swap Rate (BBSW), reportedly making Triton 2021-2 the lowest price ever achieved by a non-ADI issuer for a tranche “of equivalent tenor”.

ColCap said that its 21st prime RMBS issuance generated strong local and international demand, including from major banks and institutional investors. 

The transaction takes the company’s total issuance to over $12 billion, with $5.8 billion issued since the beginning of 2020. 

Andrew Chepul, ColCap CEO, said: “We were pleased to see such strong and continued demand for our latest RMBS issuance, which was ColCap’s equal largest and lowest priced to date. 

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“ColCap remains 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 $12 billion in our 14-year history – has us very strongly positioned for further growth in 2021.”

ColCap treasurer David Carroll added: “The strong demand for ColCap RMBS issuance is further evidence that investors remain highly confident in the quality of the assets underpinning our Triton RMBS program and our strong track record in the Australian RMBS market.”

[Related: ColCap prices $1.5bn RMBS]

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