$300 million RMBS transaction for AFG

AFG is pleased to announce the successful pricing of its third Residential Mortgage Backed Securities (RMBS) transaction. The AFG 2014-1 Trust priced today with domestic and offshore investors participating.

This is the first RMBS transaction for AFG this year, following two successful deals in 2013. With a transaction structure and asset pool consistent with previous transactions, AFG 2014-1 senior notes priced 10 basis points inside the most recent 2013 transaction.

General Manager for AFG Home Loans, Cameron Smith says ‘This is a great result for AFG.  We’re enjoying the ongoing commitment of our 2013 investors and the introduction of several new investors to AFG.   This led to the deal achieving a solid pricing outcome.’

The $300 million pool of home loans was originated through the AFG broker network.  Both local and offshore investors have indicated that they remain comfortable with the home loan pools overseen by the AFG Home Loans business.

AFG has 11.4% of Australia’s total mortgage market.  2014 marks the 20th year of business for AFG, and sees the company with a mortgage book in excess of $89 billion.  The company’s 1,950 members process an average of $3.5 billion in home loans each month, including AFG Home Loans badged mortgages.