FirstMac wins investor confidence, places RMBS issue

By Tim Neary | 10/11/2009 12:00:00 AM | 0 comments

On the back of strong investor demand, mortgage finance lender FirstMac today successfully upsized, placed and priced its 2-2009 RMBS issue. 

The transaction was initially launched at $400 million but was increased to $470 million following greater than anticipated investor bids. 

The FirstMac 2-2009 placement was arranged by HSBC Bank, and includes $220.14 million from the AOFM as a cornerstone investor with a further $249.86 million provided by external investors. 

This level of external investment brings the AOFM investment to less than 50% of the total transaction - indicating a return of confidence to the RMBS market. 

FirstMac is committed to passing the benefit of the federal government's investment in the RMBS through to home buyers and investors, said its chief financial officer James Austin. 

"This is the third allocation of AOFM funds for investment in FirstMac issued RMBS, and enables FirstMac to provide Australians a competitive and quality alternative to the traditional banks in the residential mortgage sector," he said. 

The Joint Leads and Joint Book Runners to the $470 million transaction were ANZ, HSBC, Macquarie Bank, and Westpac. 

Related Story 

AOFM allocates final RMBS - The last of the AOFM's $8bn investment into RMBS has been gobbled up by FirstMac, Resimac and Liberty.

 

 

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