Resimac’s latest issue of residential mortgage-backed securities includes a “social bond” that will be used to provide loans to first home buyers in under-served communities.
Resimac raised A$1 billion through the dual-currency issue, Bastille Trust Series 2022-1NC.
The A1 notes, worth $105 million and with a weighted average life of 0.6 years, were priced at 80 basis points over the one-month bank bill swap rate.
The A2 notes, worth US$215 million and with a weighted average life of 1.9 years, were priced at 120 bps over the secured overnight financing rate (which has replaced LIBOR).
The A3 notes, worth $354 million and with a weighted average life of three years, were priced at 140 bps over one-month BBSW.
The A3-SB social bonds, worth $35 million and with a weighted average life of three years, were priced at a margin of 140 bps.
The social bonds are the first issued by an Australian non-bank.
The AB through to F notes were priced in a range between 190 and 700 bps.
Resimac chief treasury officer Andrew Marsden said the social bonds would fund lending using the company’s high-LVR product Quickstart.
“Resimac products like Quickstart help first home buyers with a small deposit gain access to housing in under-serviced communities,” Marsden said.