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by Staff Reporter10 minute read
The Adviser

Staff Reporter

ING DIRECT has upsized its inaugural RMBS issue due to strong investor demand.

Last week, the second tier lender announced its plans to launch a $500 million RMBS issue.

But strong demand from the market enabled the bank to upscale its issue to $900 million.


The issue securitises a portfolio of residential home loans originated and serviced by ING Direct.

Macquarie Bank Limited acted as Arranger for the transaction. Macquarie and Westpac Banking Corporation acted as Joint Lead Managers.

The issue was oversubscribed and bought by 13 investors including the Australian Office of Financial Management, which purchased the entire Class A2 tranche. The other investors comprised a combination of domestic fund managers and bank balance sheets.

ING DIRECT chief financial officer Mark Mullington said the securitisation deal was part of an ongoing strategy to diversify the bank’s funding base.

"ING DIRECT is committed to growing its mortgage portfolio in coming years and a diversified funding base is a key to that strategy,” Mr Mullington said.

“ING DIRECT is also committed providing Australians with an alternative to the big four in the mortgage market.”

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