ME Bank upgrades RMBS issue

Making headlines today, Reuters has reported that ME Bank has increased its RMBS issue to $1 billion from $800 million, after receiving significant investor interest.

According to Reuters, the RMBS issue will include a top-rated $645 million 1.5-year tranche paid 100 basis points over BBSW and a $290 million 6.1-year tranche paid 110 basis points.

A total of 13 investors, including two offshore buyers, participated in the ME Bank issue.

The offer, called SMHL Series Securitisation Fund 2010-3, is jointly led by Deutsche Bank, National Australia Bank and Westpac Institutional Bank.

The Australian government bought the entire A2 tranche of $290 million as part of its RMBS purchase plan set up in 2008 to help mortgage lenders weather the global financial crisis.

The AOFM has now invested $11.3 billion of its $16 billion RMBS support plan.