AFG successfully completes $300m RMBS issue
Australian Finance Group (ASX:AFG) has today priced its AFG 2016-1 Trust Residential Mortgage Backed Securities (RMBS) issue. AFG Chief Operating Officer David Bailey said the securitisation program is an important contributor to the company’s overall growth strategy.
“To execute a transaction under the terms achieved, in a market which has been relatively volatile in 2016 is very pleasing. The other positive aspect was that we were able to welcome some new investors to our programme.
“The success of today’s issue reflects the confidence of domestic and offshore investors in the high-quality lending standards that AFG Securities apply.
“The performance of any mortgage starts and ends with the credit policies and appetite of the lender. Our AFG Securities programme has consistently delivered a strong performance and it is this performance which has helped underpin the success of our latest transaction.
The transaction will settle on 4 November 2016.
“A vibrant and strong RMBS market is vital to ensure a greater level of competition and choice into the Australian mortgage market. To this end, I take this opportunity to thank our longer term investors for their continued support and also welcome some new investors into our programme,” he said.
The transaction was AFG’s first RMBS issuance since 2014. Its most recent prior issues were a $300 million issue in 2014 and $300m in late 2013.
The AFG 2016-1 Trust Series was successfully arranged by National Australia Bank Limited (NAB). Joint Lead Managers were Australia and New Zealand Banking Group Limited and NAB.
Details relating to the A$300m AFG 2016-1 Trust RMBS transaction are as follows:
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