The deal compares favorably with Firstmac’s last transaction in November 2017 which priced at 1.11% over the Bank Bill Swap Rate.

Firstmac CFO James Austin said the success of the deal showed the confidence of major institutional investors in Firstmac’s online loan book and the quality of its customers.

“This was a pleasing result which recognises the fact that we have amongst the lowest rate of mortgage arrears and defaults in the country, and well below those of the Major Banks,” Mr Austin said.

“It is a strong endorsement of our non-bank lending model and our industry leading credit policies.”

This issue attracted a large number of new accounts, particularly from South East Asia, as well as continued interest from Japan and UK.

Mr Austin said the dual currency AUD and USD issue, which was listed in Singapore, was upsized from its original size of $500 million due to significant oversubscription. The final and maximum deal size was several times subscribed across all tranches with the A1-U 3x, the A1A 2x, the A1-B 1.8x, and the A2 4x subscribed.

“It was particularly pleasing to attract many first time investors to the Firstmac program,” Mr Austin said.

The issue brings the total amount of RMBS issued by Firstmac since 2003 to more than $20 billion.

Its most recent prior issues were $600 million issue in November 2017, $1 billion in September, and $1.7 billion RMBS issue in March 2017.

The latest issue was jointly led by National Australia Bank and United Overseas Bank.

The issue had a fully-tranched capital structure as follows:

Note class: A1-U
Tranche volume: USD$180 million
Tranche rating: AAA/AAA (S&P/Fitch)
WAL: 2.0 years
Margin to swap: Libor1m+0.80%
Initial credit support: 15%
Note class: A1-A
Tranche volume: A$201.6 million
Tranche rating: AAA/AAA
WAL: 3.0 years
Margin to swap: BBSW1m+1.05%
Initial credit support: 15%
Note class: A1-B
Tranche volume: A$78 million
Tranche rating: AAA/AAA
WAL: 5.0 years
Margin to swap: BBSW1m+1.30%
Initial credit support: 15%
Note class: A2
Tranche volume: A$60 million
Tranche rating: AAA/NR
WAL: 4.2 years
Margin to swap: BBSW1m+1.50%
Initial credit support: 5.0%

Brisbane-based Firstmac Limited is an independently-owned, Australian financial services provider with 39 years’ experience in home and investment loans.

It has written in excess of 100,000 home loans and also manages $250 million in cash investments.

Media contact: Duncan Macfarlane on 0434 184 264