Resimac closes A$500 million Prime RMBS transaction

Resimac Group Ltd (ASX: RMC, ‘Resimac’) is pleased to confirm it has priced an AUD$500 million prime Residential Mortgage-Backed Security (RMBS) transaction.

‘Resimac Premier 2020-2’, the first offering since the COVID-19 pandemic, resulted from ongoing engagement with real-money investors and establishes a good foundation for subsequent transactions. The Australian Office of Financial Management provided secondary market support with cornerstone investors and was not required to participate in the primary book. 

Resimac CEO Scott McWilliam said the transaction demonstrated the strength of Resimac’s brand and assets, which had continued to see strong support despite the challenging market environment. 

“This deal emphasises the depth of Resimac’s funding platform, which is underpinned by the quality of our mortgage portfolio,” he said. 

“Our Prime portfolio remains in good health with only circa 6% of customers requesting COVID-19 hardship payment moratoriums, comparing favourably with the major banks and peers.” 

Resimac, which has more than AUD$14 billion in assets under management, supported by its diversified banking relationships, has been able to renew and increase the size of its warehouse facilities. 

“We are pleased to report that since early March we have been able to renew and extend almost AUD$2bn in funding facilties with both onshore and offshore banking partners,” Mr McWilliam said. 

“Since the COVID-19 pandemic commenced, our approach to providing the Australian mortgage market with competitively-priced and solution-based home loan products remains unchanged. We have continued to offer our full range of mortgage products throughout the pandemic, avoiding making blanket credit policy changes. This approach has seen us continue to settle consistent volumes of quality mortgage assets. 

“Our funding and capital position are strong, providing a platform for continued AUM growth in a very competitive market,” he said. 

The Resimac Premier Series 2020-2 transaction included Deutsche Bank AG and National Australia Bank as co-Arrangers and Joint Lead Managers, while JP Morgan, Standard Chartered Bank and Westpac Banking Corporation were Joint Lead Managers.