FirstMac refinances $172.6m RMBS

FirstMac today announced that it has successfully refinanced a $172.6 million RMBS issue after voluntarily increasing margins and credit enhancement of the original issue.

The transaction involved 12 investors and the senior notes were priced at 160 basis points over the one-month BBSW.

FirstMac chief financial officer James Austin said the transaction highlighted the lender’s long term commitment to the market and its desire to work with existing investors to find a constructive solution to the credit market predicament.

“FirstMac was willing to absorb the additional market costing in order to demonstrate our commitment to our investor base,” he said.

Mr Austin also said the government’s recently announced RMBS initiative should see the lender raising substantially more funds for home loans in the future.

“FirstMac hopes to participate in the program and will use funding made available for the writing of new home loans.

“We anticipate being able to significantly increase our new lending volumes as a consequence of the government initiative,” Mr Austin said.