Chief Financial Officer James Austin said the deal, which was 2.2 times subscribed on the senior AAA tranche, would allow Firstmac to step up its push into the auto-lending market by ensuring its loans remained highly competitive.
“The strong appetite for this transaction from institutional investors and tight pricing demonstrates confidence in the high-credit-quality car loans that we originate,” Mr Austin said.
“This caps off a great year for Firstmac, particularly in the second half where we have been writing strong volumes in both home and auto.”
The issue price for Tranche A1 was just +90 over the Bank Bill Swap Rate (BBSW), the tightest ever for a Firstmac ABS issue.
The issue, which follows Firstmac’s recent introduction of risk-based pricing on auto loans, secures Firstmac’s funding for auto lending well into 2026.
It follows Firstmac’s $1 billion “Eagle” RMBS issue in March which was upsized from $500 million, after receiving strong support in the market.
Firstmac’s previous auto issues were $300 million in November 2023 at a margin of +137 over BBSW and $475 million in November 2022 at +175 over BBSW.
The latest ABS issue brings the total amount of RMBS and ABS issued by Firstmac since 2003, to more than $56 billion.
Brisbane-based Firstmac Limited is an independently-owned, Australian financial services provider with more than 40 years’ experience in home and investment loans.
It has written in excess of 130,000 home loans and has $20 billion in home loans under management. Firstmac also has a growing auto finance business with a current portfolio of $1 billion. Firstmac is a premier sponsor of the Brisbane Broncos.
Media contact: Duncan Macfarlane on 0434 184 264