Firstmac has completed the largest RMBS deal for a non-bank lender since before the Global Financial Crisis.
The $1 billion Firstmac Mortgage Funding Trust Series 1-2015 transaction was successfully placed and priced in a deal arranged by Australia and New Zealand Banking Group, jointly led by Westpac Institutional Bank, nabSecurities, and JP Morgan Australia Limited. A total of 22 investors participated in the transaction including 16 real money accounts.
Firstmac CFO, James Austin says the market acceptance of Firstmac’s largest RMBS issuance had been exceptional.
“To achieve a result of this size demonstrates Firstmac’s strategy of financing high quality loans online has gained significant traction.
“It’s a great endorsement for Firstmac to have placed the largest non-bank RMBS deal since before the GFC shook the market.”
Austin says Firstmac’s solid history of successful RMBS issuances had fostered investor interest over more than a decade.
“The Firstmac bonds have been well received by an investor market keen to take up an offering with a strong track record.
“Firstmac has demonstrated its ability to innovate and create opportunity in the home loan sector through the use of technology to capture market share from more traditional bricks and mortar lenders.”
It was the strength of Firstmac’s online-only retail lender, loans.com.au, that facilitated Firstmac’s capacity to achieve record-breaking RMBS deals.
“Loans.com.au has set some records of its own in recent months, with loan applications doubling and settlements outstripping previous peaks,” Austin said.
Firstmac has issued more than $13 billion in RMBS since 2003.