Lender completes $1.4bn RMBS issue

Growth only expected to accelerate since “cloud of uncertainty” has lifted

Lender completes $1.4bn RMBS issue


By Madison Utley

A non-bank lender has reported completing its largest ever public trade.

Firstmac yesterday announced its $1.4bn residential mortgage-backed security (RMBS) issue, an accomplishment that comprises almost half of its annual funding program of $3bn and brings the total amount of RMBS issued by Firstmac since 2003 to over $24bn.

Twenty-five institutions invested in the oversubscribed issue, with over half coming from abroad including the UK, Singapore, and Japan.

“This is a great vote of confidence from foreign investors in our business and in the Australian property market more broadly,” said Firstmac Kim Cannon.

“The cloud of uncertainty that was hanging over the Australian property market before the election has been lifted and Firstmac is well positioned to benefit,” he added.

Firstmac has increased its loan book by 10% – from $10bn to $11bn – since June 30, 2018. The lender attributes the growth to both its third party broker channel and its direct online lender loans.com.au.

Looking ahead to next year, Cannon expects the loan book to “grow even faster” as consumers increasingly consider turning to non-bank lenders rather than the big banks, a trend advanced through the government’s recent announcement it will give non-majors and non-bank lenders preference with its first home buyer scheme.

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