Resimac Group Ltd has priced a A$500 million prime residential mortgage-backed security transaction, its first new offering to investors since the COVID-19 pandemic was declared.

The top two tranches, for $149.5 million and $288 million, were priced at 1.0 per cent and 1.55 per cent over the one-month bank bill swap rate, respectively. These A1 and A2 notes were both rated AAA(sf) and AAAsf by S&P and Fitch.

Standard & Poors rated eight of the nine tranches, while Fitch covered just the A1, A2 and AB notes (priced at 2.25 per cent over BBSW).

The non-bank lender said the Australian Office of Financial Management provided secondary market support for this deal, to be known as the Resimac Premier 2020-2 transaction. That is, the AOFM was not required to participate in the primary book.

Deutsche Bank AG and National Australia Bank were co-arrangers and joint lead managers on the transaction, with the other JLMs listed as JP Morgan, Standard Chartered Bank and Westpac Banking Corporation.

Resimac, with more than $14 billion in assets under management, has been able to renew and extend almost $2bn in funding facilities from a mix of local and offshore banks, according to Resimac CEO Scott McWilliam. He asserted this outcome reflects the depth of Resimac’s funding platform, and the quality of its mortgage portfolio.

"Our prime portfolio remains in good health with [about] six per cent of customers requesting COVID-19 hardship payment moratoriums, comparing favourably with the major banks and peers," McWilliam said.