Login
ISCOVER
In encouraging news for the mortgage market non-bank lender FirstMac has successfully placed and priced its second AOFM-assisted RMBS deal.
The FirstMac 1-2009 placement totalled $625 million with $499 million from the AOFM and a further $126 million from five external, domestic investors.
The Class A-1 notes were priced at 0.70 per cent above the BBSW while the Class A-2 notes priced at 1.15 per cent above the BBSW.
James Austin, FirstMac chief financial officer, said the government’s investment in RMBS had helped foster competition among a diverse range of lenders and this latest investment would enable FirstMac to increase its lending volumes.
“The position of second tier lenders has been considerably strengthened by this program and this can only benefit the community as a whole.
“We are buoyed by the additional funds from external investors and will continue to increase our new lending volumes as a consequence of this second successful transaction.”
FirstMac’s first AOFM investment saw it place a $600 million RMBS in November last year, with $500 million contributed by the government.
JOIN THE DISCUSSION