Firstmac smashes RMBS record with $2 billion issue
The $2.0 billion issue breaks the previous Australian record of $1.7 billion, set by Firstmac in 2017.
Firstmac paid a margin above the bank bill rate of just 73 basis points on the RMBS bonds, the tightest margin paid by any non-bank since the GFC in 2007.
Chief Financial Officer James Austin said the rare combination of high volume and tight pricing meant this was a very strong print which highlighted investor confidence in Firstmac’s loan book and program.
“Institutions have recognised that we offer premium credit, arrears that run well below banks, and an engaged investor relations program that saw us win 2020 Issuer of the year,” Mr Austin said.
“As well as commitment from our regular investors, it has been phenomenal to see that we have attracted many new investors, some of whom have not previously bought any non-bank RMBS at all. Firstmac’s proven track record as a strong sustainable business has been the main contributor to this milestone deal.”
Mr Austin said the 29 institutions who invested in the issue came from all major markets, including Australia, Japan, South-East Asia, Europe and the United States.
At 73 basis points, the interest rate margin on the issue is less than other recent issues by non-banks, and far below the 135 basis points that Firstmac paid for its previous issue in September 2020.
The transaction was arranged by Australia and New Zealand Banking Group, along with Joint Lead Managers National Australia Bank, Standard Chartered Bank, and SMBC Nikko Capital Markets Limited.
The issue takes Firstmac past the milestone of $32 billion in bonds issued since it commenced its RMBS program in 2003. It also cements Firstmac in its position as one of the leading non-bank lenders in Australia.
Firstmac continues to go from strength to strength, impressing investors by becoming the first lender to successfully complete an RMBS issue after international funding markets froze in the wake of the COVID-19 crisis in March 2020.
Much of its success is owed to its strong broker introduced business as well as its retail arm online lender loans.com.au.
During the crisis, Firstmac offered unprecedented transparency to investors, by conducting a full analysis of its loan book each month and reporting the exact level of COVID-19 hardship arrangements and arrears.
Media contact: Duncan Macfarlane on 0434 184 264
Firstmac Limited is an independently-owned, Australian financial services provider with more than 40 years’ experience in home and investment loans. Firstmac has written in excess of 130,000 home loans and manages approximately $13 billion in mortgages and $300 million in cash investments. Firstmac is a premier sponsor of the Brisbane Broncos