ColCap's Westpac-arranged issue largest ever from an Australian non-bank lender
ColCap Financial, parent company of broker-focused brand Granite Home Loans, has announced Australia’s largest-ever residential mortgage-backed security (RMBS) transaction by an Australian non-bank lender.
Backed by some of the largest domestic and international banks – Westpac acted as arranger, with Commonwealth Bank, NAB, Standard Chartered and others acting as lead managers – the RMBS was upsized from just $1 billion.
ColCap is homing in on prime residential real estate through the issue, with the diverse portfolio comprising SMSF, owner-occupier and investor loans.
Originations are being sourced through multiple distribution channels, including Granite Home Loans and mortgage aggregator LMG’s white-label Zeus by LMG offering.
“The broking channel is an important part of our multi-channel distribution strategy, which also includes wholesale and retail channels. We look forward to continuing to work with all of our partners to meet the needs of clients with innovative finance solutions,” said ColCap chief executive Andrew Chepul (pictured, right).
“Our latest $2.7 billion RMBS – the largest non-bank RMBS ever – is a sign to the broker market that we’ve never been better placed to offer brokers highly competitive, innovative products, which are designed to meet the needs of standard and niche borrowers,” said Chepul.
He added: “This RMBS gives all our partners, including the mortgage managers we fund and brokers we work with, access to prime mortgage finance at competitive rates. This ultimately helps them realise the dreams of their clients – and grow their businesses.”
ColCap’s record transaction comes amid a strong start to the year for the RMBS market. This month has seen both AFG and MA Money issue their largest RMBS transactions to date, at $1.2 billion and $1.25 billion respectively.
ColCap treasurer David Carroll (pictured, left) said Australia’s stable regulatory environment and economy is appealing to international investors.
“We see strong demand for asset performance, and we continue to meet that demand,” said Carroll. “ColCap has nurtured investor relationships over many years, and many continue to return on the back of the consistent asset performance we’ve been able to deliver.”
The prime mortgage market is particularly strong right now. Recent results from ASX-listed non-bank lender Pepper Money showed a 161% year-on-year increase in prime lending in the 12 months to 31 December.
