FirstMac prices RMBS

Staff Reporter

FirstMac has successfully place and priced its first Residential Mortgage Backed Securities (RMBS) issue for 2010.

The transaction, which was officially completed yesterday, was initiated by the Australian Office of Financial Management (AOFM) in a bid to stimulate the Australian mortgage market.

The issue is a $416 million transaction which was arranged jointly by NAB and Westpac and the AOFM.

More than $224 million was provided by external investors.

FirstMac chief financial officer James Austin said the company remains committed to pass the benefit of the Federal Government’s investment in RMBS through to home buyers and investors which the mandate is intended to assist.