Bluestone completes second securitisation of the year

by Duffie Osental01 Oct 2019

Non-bank lender Bluestone has announced the completion of its second securitisation for 2019 with its $450m Sapphire 22 pricing on 26 September.

The transaction is the lender’s 29th mortgage-backed issuance. Campbell Smyth, chief executive officer of Bluestone, said that he was “very happy” with the level of investor engagement on the deal.

“The momentum we gained with a broader investor group in Sapphire 21 has continued in this deal with solid support across all tranches from both Australian and offshore investors,” he said.

“The journey the business has been on over the last 18 months has been transformational.  We have continued the growth story that made the business such an attractive acquisition opportunity whilst also bolstering our team, systems and processes. 

“It is pleasing to see that both new and repeat investors recognised this change and further embraced the business and Sapphire issuances.  We look forward to continuing to originate and securise high-quality loan pools that continue to be attractive to a diverse range of local and international investors,” he added.

Meanwhile, Todd Lawler, chief financial officer at Bluestone, said that the deal indicated that the market has reacted positively to the lender’s change in product mix, with the deal holding a higher percentage of prime and near prime loans than previous pools.

“Sapphire 22 continues our plans to offer bonds and collateral that appeal to a broader sector of the global fixed income market,” he said. “As was the case in the last transaction, Sapphire 22 is CRD IV compliant”

Bluestone said that it expects Sapphire 23 to occur in the first half of 2020.