Bluestone closes $300m RMBS

Reporter 15:05 PM, 10 Nov 2017 1 minute read

Specialist lender Bluestone Mortgages has closed a $300 million RMBS transaction, taking the company’s capital markets issuances to $750 million over the last year.

In a strong market, the Sapphire XVII deal was well received by investors, with over-subscription experienced across the structure.

A total of 18 investors participated in the transaction, with over half of the interest coming from offshore entities.

The portfolio is in line with past deals and has a conservative weighted average loan-to-value ratio (LVR) of 68.6 per cent and only 16.8 per cent interest-only loans.

It brings the group’s total capital markets issuances for the past 24 months to just shy of $1 billion: over $950 million.

Bluestone said that the transaction correlates with a growing market presence for the brand, which includes its award as winner of the specialist lending category of the Third Party Lending Report: Non-bank Lenders.

The group’s Asia Pacific CEO, Campbell Smyth, commented: “Bluestone Mortgages is an established provider of attractive financial alternatives to SMEs and the credit-impaired. These products are in tune with specific market needs and evolving end-user requirements. This approach continues to directly resonate with thousands of Aussies, who can now access a suite of financial solutions that supports their needs, without discrimination based on trading history or credit rating. Furthermore, this strategy has escalated the trajectory to meet the recent billion-dollar milestone and provides the foundation for future efforts geared to realise the two-billion milestone.

“We encourage brokers to embrace specialist lending as part of their businesses, and in turn create stickier relationships and not leave revenue on the table.”