Lender’s largest-ever RMBS follows record issuance from AFG
MA Money has completed its largest residential mortgage-backed security (RMBS) transaction to date after pricing its first issuance for the year at $1.25 billion.
It was upsized from an initial price of $1 billion.
Chris Wyke (pictured), joint chief executive of parent company MA Financial, revealed that the offering received strong support from both onshore and offshore investors, including four brand new investors.
“Despite a competitive and crowded market environment, MA Money achieved the targeted upsize from $1 billion to $1.25 billion, underscoring continued confidence in the business and its long-term strategy,” said Wyke.
“Investor confidence in MA Money continues to strengthen as we scale,” he added.
The group surpassed $5 billion in loans under management last December, thanks in part to the rollout of new commercial and bridging loans earlier in the year.
MA Money treasurer Akeshni Gour added: “This is our largest issuance to date and our first to include a foreign currency tranche, further diversifying our funding base and expanding our global investor reach.
“The strong support from both domestic and offshore investors, including new institutional participants, demonstrates the depth of confidence in our business model and asset quality. In a highly competitive market, direct engagement with our investors was instrumental in achieving the successful upsize.”
It has been a strong start to the year for the RMBS market.
Last week, Australian Finance Group (AFG) issued a $1.2 billion RMBS through its AFG Securities subsidiary, marking the largest RMBS issue to date for the ASX-listed lender and mortgage aggregator.
“Strong demand across all tranches of notes highlights the depth of our RMBS program and reinforces the positive sentiment towards Australian RMBS more broadly,” said AFG chief executive David Bailey.
AFG’s issuance was upsized from $750 million.
