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ISCOVER
Staff Reporter
In a bid to pass the government's investment in Residential Mortgage Backed Securities through to home buyers and investors, Firstmac has officially priced an RMBS issue.
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The 2-2011 placement, arranged by ANZ Bank, with Westpac Bank acting as joint lead, includes $99.4 million from the AOFM as a cornerstone investor, with a further $199.85 million provided by external investors.
FirstMac retained the B2 Notes valued at $0.75 million. The AOFM invested $87.7 million in the A3 Notes and $11.7 million in the AB Notes.
The AOFM's investment is part of a scheme to foster competition in Australia's mortgage market through the purchase of RMBS, as announced by Treasurer Swan in September 2008.
"FirstMac was pleased to successfully place and price this transaction during volatile economic times arising from issues in Europe," FirstMac chief financial officer James Austin.
"Funding costs across the industry globally have risen significantly over the past 12 months with this transaction pricing 0.3 per cent wider than a similar transaction placed last year.
"Europe continues to provide an uncertain environment. Given these risks, it is prudent to maintain the long-term funding profile of our balance sheet even if this comes at a higher cost."
