Resimac announces $1 billion RMBS transaction

by Mike Wood06 May 2021

Non bank lender Resimac has announced a second huge RMBS deal this year with a $1 billion transaction.

The group closed the Resimac Bastille Series 2021-1NC non-conforming transaction yesterday, which follows on from a $1.5 billion deal struck in mid-March. That prior deal was their largest since 2006, before the Global Financial Crisis.

“This latest RMBS issuance enables us to continue supporting the many small businesses and self-employed Australians with access to credit at a time it could make a material difference,” said Daniel Carde, General Manager Distribution at Resimac. “As a pioneer of the non-bank space, we are committed to meeting the evolving needs of Australians, with our flexibility enabling us to service customers that some of the more traditional lenders may not.”

Group Treasurer Andrew Marsden added: “This deal supports the market-leading offering that Resimac provides to self-employed borrowers and borrowers who fall outside traditional lending guidelines. Resimac’s growth aspirations are supported by strong demand for RMBS in the capital markets, with sound underlying credit performance as business conditions improve.

The news comes on the back of extremely strong growth in the latter half of 2020 for Resimac. They announced profits of $50.5m at the end of February, an 88% rise in net profits after tax (NPAT).

The buoyant housing market has seen several non bank lenders post big RMBS numbers in recent weeks. Firstmac spoke to Australian Broker on Monday about their recent transaction, which was worth $2 billion and was the largest ever written by an Australian non bank, surpassing the next best deal, also done by Firstmac back in 2017.

Pepper also priced a non-conforming transaction recently, arranging a $750 million deal that they put down to the strength of the home lending market.

Even today, La Trobe Financial priced their first RMBS transaction of 2021, a $1.25 billion issuance that was over-subscribed and backed by several domestic and international funding houses.