Mortgage lender ColCap (formerly Columbus Capital) has completed the first issue of residential mortgage-backed securities for the year in the local market, pricing A$1.5 billion of notes. It is its biggest issue to date and includes some very low pricing.

The deal includes $180 million of five-year notes, priced at 125 basis points over the one-month bank bill swap rate.

The biggest class of notes, $945 million of A1-AU notes, which have a weighted average life of 2.6 years, was priced at 85 bps over one-month BBSW.

ColCap will pay 70 bps over the one-month BBSW on the $150 million A1-MM notes, which have weighted average life of 0.3 years,

Pricing on $105 million of A2 notes, which have a weighted life of 4.4 years, was 135 bps over one-month BBSW.

The AB through to E notes all have a weighted average life of 4.4 years. Pricing ranges from 150 bps to 575 bps.

Thirty-eight investors participated in the transaction, with more than half of them real money investors. NAB was the arranger and joint lead manager.

The transaction is ColCap’s 19th prime RMBS issue, worth a total of more than $10 billion. It has issued $3.9 billion since the beginning of last year.

ColCap lends through a wholesale lending brand, Origin Mortgage Management Services, and a direct to consumer business, Homestar.