Non-bank lender sets inaugural RMBS pricing record

ORDE Financial has priced its first residential mortgage-backed security (RMBS) public term issuance, totalling $1 billion.

The transaction is believed to be the “largest inaugural non-bank RMBS issuance in Australian history”, doubling the previous largest transaction.

The managing director of ORDE Financial and former senior executive of La Trobe Financial, Ryan Harkness, stated: “We are delighted to price ORDE’s highly anticipated first RMBS term issuance.

“As a key milestone, it reflects the dedication of our whole team of over 100 professionals and the support we’ve received from our many partners, investors, and shareholders.”

Mr Harkness said that the translation will help diversify funding sources and the investor base for ORDE Financial.

The non-bank lender added that it aims to be a “regular RMBS issuer” and continue to build relationships with domestic and international investors, according to Mr Harkness.

Paul Wells, fellow managing director of ORDE Financial, stated: “Completing ORDE’s first term issuance with record investor support highlights our responsible growth and our core value of a trusted participant, serving borrowers and investors with integrity and transparency.

“The same themes underpinned the three-year period prior to this inaugural term deal, during which our established funding partners provided unprecedented support levels for ORDE’s high growth.”

He revealed that ORDE is preparing to launch a new “much-needed, scalable retail investor product”.

“The ORDE Income Fund aligns with ORDE’s mission of delivering significant improvements through reliable innovation,” he said.

“We have been patiently preparing this product, and our highly experienced team is passionate about what this will deliver to Australian retail investors.”

ORDE Financial launched in 2020 and focussed on mortgage lending. According to the non-bank, it has been “broker-oriented” and is committed to delivering a “comprehensive” product range.

National Australia Bank (NAB) was the arranger and joint lead manager of the transaction, alongside the Commonwealth Bank of Australia (CBA), Macquarie Bank, and Westpac, which also served as joint lead managers.

[Related: RMBS prime arrears continue to rise: S&P]