Liberty Financial's latest SME securitisation was upsized by 67% on strong investor demand, growing from a launch volume of $600 million to a final size of $1 billion across all offered tranches.
Deutsche Bank acted as sole Arranger, with BofA Securities, Commonwealth Bank, NAB, and Westpac joining as joint lead managers.
The strong reception reflects a broader shift already reshaping business lending. The RBA's February 2026 Bulletin found non-banks' share of business lending has grown significantly since 2022, particularly in smaller SME loans, partly due to reduced APRA capital requirements on banks.
Moody's Investors Service rated the $1 billion of notes issued. The largest tranche, $650 million of Class A1 notes, carries a weighted average life of about 2.5 years and priced at a margin of 115 basis points over one-month BBSW. A further $224 million of Class A2 notes, with a weighted average life of roughly 3.7 years, priced at 130 basis points over one-month BBSW. Both tranches were rated Aaa(sf). Pricing on the remaining Class B, C, D, E, and F notes — rated Aa2(sf) through B2(sf) — was not disclosed.
The underlying pool consists of SME mortgages with a weighted average loan-to-value ratio of 62% and seasoning of 29 months. Settlement is scheduled for 10 September.
Peter Riedel (pictured), Liberty chief financial officer, linked the deal's reception to the company's broader positioning in the market.
"Liberty is a leader in providing households and small businesses with the freedom to choose from a wide range of products and services to meet their financial needs. We are grateful for the support investors have extended to our business," he said.
The result builds on a strong FY26 for the group. Liberty Financial Group posted an 8% rise in statutory net profit after tax to $143.8 million for the year, with financial assets growing 3% to $15.2 billion and underlying cash return on equity climbing to 13.1%, up from 12.1% the prior year.
The lender holds a "STRONG" servicer rating from Standard & Poor's across commercial mortgages and prime and non-prime residential mortgages and auto loans, and remains Australia's only investment-grade rated non-bank issuer, rated BBB with a stable outlook by S&P. It also points to an unblemished capital markets track record, with no ratings downgrades or charge-offs recorded across its securitisation program to date.
For brokers with SME clients, the upsized deal signals sustained wholesale funding appetite in the sector, a factor that can support continued competitiveness in Liberty's SME loan pricing and availability.
Get the hottest and freshest property and mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
