Thinktank closes its first 2024 RMBS

Non-bank lender Thinktank has closed its first residential mortgage-backed securities (RMBS) issue for 2024 priced at $750 million.

The RMBS issuance of this year is the lender’s 15th transaction since the opening of the business in 2006, bringing Thinktank’s total securitisation issuance to $7.5 billion.

The lender said that the launch size was originally $500 million however increased to $750 million due to “strong investor demand”, with the final order book being 1.5 times oversubscribed, reaching more than $1.1 billion.

Jonathan Street, chief executive of Thinktank, said: “The transaction represents a strong start to the year for ourselves and the market generally, underscored by keen participation from both existing investors while also welcoming a number of new investors into our RMBS program.”

Thinktank revealed that the final order book comprised of 22 investors, which was made up of 40 per cent offshore participants and 60 per cent from domestic accounts. The lender said that bank balance sheets made up 61 per cent of the final order book, with real money investors accounting for the remaining 39 per cent.

The RMBS pool of 1,200 mortgages had an average loan size of $624,982, with 94 per cent of properties residing in major metropolitan areas and 6 per cent in urbanised non-metro areas.

According to Thinktank, the RMBS issuance highlights the “sustained quality” of the lender’s long-term commercial and residential loan books.

Street commented: “We continue to maintain a positive outlook for the SME and the self-employed sector despite the persisting challenges of higher interest rates and we remain committed to continuing to expand our support for this critical part of the Australian economy.

Thinktank launched two new commercial lending products earlier this year, including the Commercial Max mortgage and the Commercial Lease Doc product, which were launched following broker feedback. Broker clients were looking to access larger loan sizes to drive growth within their business, property investment portfolios, or SMSF strategies.

[Related: Thinktank eyes commercial growth with new product launches]