Australian Finance Group Ltd (ASX: AFG) announced that its subsidiary, AFG Securities Pty Ltd, has priced a A$1 billion Residential Mortgage-Backed Securities (RMBS) issue, upsized from A$500 million.
AFG CEO David Bailey said the transaction received strong support drawing interest from 32 investors including four new investors to the RMBS programme. “This represents AFG’s equal largest placement to date. The deal pricing tells a very positive story for Australian RMBS, with our AAA note pricing at 95bpts, 25bpts inside our last public Prime RMBS. The strong demand across all Notes and the return of offshore investors enabled the transaction to upsize to $1BN underscoring AFG Securities’ reputation as a trusted issuer.”
Mr Bailey stated that the company’s securitisation program reinforces sustained growth for investors, brokers, and customers. “As both an originator and distributor of mortgages, AFG occupies a differentiated position in the Australian home loan market, providing us with considerable insight into mortgage behaviours and trends.
“This expertise informs our credit policies and lending practices, which are fundamental to our diversified earnings business model,” he said. “We are very pleased with the successful upsizing of this transaction and remain committed to offering a competitive suite of home loan products to our brokers and their clients, as well as sound investment opportunities to participants in the RMBS market.”
The transaction marks AFG’s 19th issue in the public RMBS market and settles on 2 October 2025.
