FirstMac prices $625m RMBS

The AOFM's efforts to stimulate competition in the mortgage industry are starting to take shape as FirstMac announced it has successfully placed and priced a $625m issue.

The issue includes $499m from the AOFM as a cornerstone investor and a further $126m from external investors.

The deal is part of an $8 bn investment made available last October, with $4 bn allocated to issuers/originators that are non-ADIs.

FirstMac's CFO James Austin said market observers who have been critical of the success of AOFM's program to date have misunderstood the government's objectives.

"The initiative is designed to foster competition and get to the other side of the global financial crisis with more than just the big four banks," he said.

"The position of second tier lenders has been considerably strengthened by this program and this can only benefit the community as a whole."

This latest transaction is FirstMac's second AOFM sponsored RMBS.

The Joint Leads and Joint Book Runners to the $625 million transaction were ANZ, HSBC, and Macquarie Bank.

 Related stories:

Challenger prices RMBS issue

AMP prices $535m of RMBS