Thinktank prices record $750m issue

by Mike Wood09 Dec 2021

Specialist lender Thinktank has priced a record $750m commercial mortgage-backed securities issue, its seventh such transaction.

It is thought to be the biggest ever priced in Australia by an SME commercial lender, as well as being the largest that Thinktank has ever achieved.

The deal comes on the back of a previous transaction of $500m of residential mortgage-backed securities in August.

Today’s deal was priced in a 90/10 split between Australian and foreign investors, with ratings agency S&P ranking the largest portion, $450m, as highest-grade class A1 Notes.

“The participation of 20 institutional investors, both in Australia (90%) and overseas (10%) for this A$750 million deal, illustrates a continuation of keen demand for alternate asset-backed issues,” said Thinktank CEO Jonathan Street.

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“Nearly two years into COVID, the fact we have been able to successfully complete both CMBS and RMBS issues for A$1,250 million in the past few months speaks volumes for how the business has successfully negotiated the pandemic and has continued to provide credit to the critical SME and self-employed sectors of the economy on a competitive and scalable basis.”