ME Bank reopens offshore market for RMBS

Philip Bayley
Two new securitisation deals were launched late on Friday, one of them being the first mortgage-backed bond pitched at European and Asian investors since a St George deal in June 2007.

There has been much talk in recent weeks of there being significant interest among European investors for Australian RMBS, and now ME Bank will establish the degree of that demand with a $1 billion bond.
 
ME Bank's SMHL Securitisation Fund 2010-2E will seek to sell US$283 million of Class A1, 'AAA' rated RMBS; A$315 million of Class A2, 'AAA' rated RMBS; A$333 million of Class A3, 'AAA' rated RMBS; A$29 million of Class AB, 'AAA' rated RMBS; and A$19 million of Class B, 'AA-' rated RMBS.

Macquarie Leasing is also going to test international investor demand for Australian ABS. The SMART Series 2010-1US Trust will be the first SMART Series transaction to be issued in the US market.

The last ABS issue targeting international investors was also from St George Bank, in July 2008.

The Macquarie deal will comprise US$92 million of short-dated Class A-1 notes rated 'F1+'; US$105 million of Class A-2 notes, US$210 million of Class A-3 notes and US$93 million of class A-4 notes all rated 'AAA'; and five tranches of progressively subordinated notes denominated in Australian dollars.
The notes are backed by car and truck leases totalling just over A$660 million.