ME Bank priced and upsized its SMHL Securitisation Fund 2009-3 prime residential, mortgage-backed securities issue yesterday, as scheduled and expected. Deal size was increased to A$780 million, from A$500 million.The innovative Class A1R tranche attracted A$250 million of investment from cash fund and money market investors, who, largely, have been absent from the sector since the onset of the GFC. The redeemable/convertible structure of the tranche enabled pricing of just 70 basis points over 30-day bank bills, even with a weighted average life of 2.6 years. The standard Class A1 tranche was sized at A$500 million and priced at 140 bps over bank bills. This is 10 bps tighter than the pricing achieved on the equivalent tranche of the SMHL Securitisation Fund 2009-2 issue, sold in September, and in line with pricing of similar tranches of RMBS in which the Australian Office of Financial Management was an investor.Pricing on the A$16.4 million Class AB and Class B tranches was not disclosed.Another unusual feature of the transaction was the listing of the Class A1 and A1R tranches on the Irish Stock Exchange to facilitate international investor participation. International investor participation accounted for 16 per cent of the Class A1 tranches.With the Class A1R tranche facilitating the return of cash fund investors to the sector, this is likely to become a permanent feature in subsequent RMBS issuance.