AFG Head office

Australian Finance Group completes $700 million RMBS issue

Australian Finance Group Ltd (ASX: AFG) has successfully priced its largest transaction to date, completing a $700 million AFG 2020-1 Trust Residential Mortgage Backed Securities (RMBS) issue.

AFG Chief Executive Officer David Bailey welcomed the successful transaction at a time of dislocation in the market brought about by the COVID-19 pandemic.

“The strong support we received for the issue is evidence of the depth of the securitized business.

“As both an originator and a distributor of mortgages, our experience informs our lending practices. Disciplined lending criteria and active management of the portfolio has meant we are in a fortunate position to take our paper to market.

“Our portfolio, 100% broker introduced, has a track record of outstanding performance and we are very pleased to see both new and return investor participation.

“The support from both domestic and international investors has allowed the deal to upsize from $350 million to $700 million.

“On behalf of AFG, I would like to express my thanks to our investors for their support. Support that has enabled the company to issue $3.575 billion of paper into the market over the past seven years.

The $700 million AFG 2020-1 Trust RMBS transaction settles on Thursday 30th July. Details are as follows: