Firstmac issues A$1 billion RMBS

Firstmac has completed the biggest issue of residential mortgage-backed securities by a specialist mortgage lender since the financial crisis, raising A$1 billion of funding.

Twenty-two investors (16 of them real money accounts) participated in the transaction - Firstmac Mortgage Funding Trust 1-2015.

Firstmac chief financial officer James Austin said in a statement that the success of the issue would allow Firstmac to continue its strong performance through its online retail lender loans.com.au.

Pricing on the $600 million of A1 notes, which have a weighted average life of 2.9 years, was 98 basis points over the one-month bank bill swap rate.
 
Firstmac last issued RMBS in September last year, when its A1 notes were priced at 90 bps over the bank bill swap rate.

Pricing on the $250 million of A2 notes, which have a weighted average life of 3.6 years, was 115 bps over the swap rate.

Pricing on the $50 million of A3 notes, which have a weighted average life of 2.8 years, was 135 bps over swap.

The $58 million of AB notes, which have a weighted average life of 5.5 years, was 195 bps over swap.

The B to D notes, which raised a total of $40.2 million, were priced in a margin from 250 bps to 550 bps and Firstmac retained the E notes.