Funding for the non-bank sector has taken a another step forward with the news that FirstMac successfully placed and priced a $600 million RMBS issue on Friday.
FirstMac was one of the first non-bank lenders to benefit from the Australian Office of Financial Management (AOFM) initiative intended to stimulate the Australian mortgage market.
The FirstMac 2-2008 placement, arranged by ANZ, includes $500 million from the AOFM as a cornerstone investor, with a further $100 million provided by external investors.
FirstMac CFO James Austin said given present market conditions the company welcomed the Australian government’s temporary investment in Australian RMBS and the competition it would foster among a diverse range of lenders.
“FirstMac applauds this government initiative to reinvigorate Australian securitisation and help underpin ongoing competition in the residential mortgage market,” Mr Austin told Mortgage Business.
“The policy and the AOFM’s participation has been very well considered and designed. It will provide more options for Australian home owners and aspiring home buyers,” Mr Austin said.
“We anticipate being able to significantly increase our new lending volumes as a consequence of this successful transaction.”
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