27 Mar 2020

AOFM supports $1 billion Firstmac RMBS issue

Non-bank lender Firstmac Limited has completed a $1 billion RMBS raising, becoming the first Australian company to successfully tap funding market since the coronavirus crisis caused widespread fears of a liquidity squeeze.

Firstmac Chief Financial Officer, James Austin said the issue was achieved with the support of the Australian Office of Financial Management (AOFM), which invested in Firstmac’s RMBS in a repeat of the support it provided to the industry during the GFC.

“Firstmac has been progressing this transaction over the past six weeks. Despite the extremely difficult market conditions that have eventuated during this time, Firstmac’s longstanding investor relationships, on the back of excellent quality prime collateral and historical portfolio performance, have now allowed us to bring this transaction to market,” Mr Austin said.

“The participation of the AOFM has brought additional confidence to the investors in the transaction and has facilitated the successful pricing and upsizing of this trade. The AOFM has acted decisively, on a timely basis, underpinning the strength and reputation of Australian RMBS, which is one of the safe haven asset classes in the world”.

The proceeds of the issue will be used by Firstmac and its retail brand loans.com.au to continue writing home loans for ordinary Australians.

Approximately 81% of the transaction was placed with institutional investors across the transaction structure. Investors to the transaction participated from United Kingdom, Asia, together with domestic Australian domiciled institutions.

The transaction was Arranged by JP Morgan Securities Australia Limited, together with Joint Lead Managers, Australia & New Zealand Banking Group, National Australia Bank, and Westpac Banking Corporation.

“Firstmac is a prime home loan lender with loan quality among the best in the entire lending industry as measured by loan arrears and defaults,” Mr Austin said.

“We have a reputation in the market as a credible challenger lender, and today we have proven this again.”

It brings the total amount of RMBS issued by Firstmac since 2003 –to more than $25 billion.
 
Media contact: Duncan Macfarlane 0434 184 264 

Firstmac Limited is an independently-owned, Australian financial services provider with almost 40 years’ experience in home and investment loans. Firstmac has written in excess of 100,000 home loans and manages approximately $12 billion in mortgages and $300 million in cash investments. Firstmac is a premier sponsor of the Brisbane Broncos.

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