Heritage Building Society has today finalised its tenth and largest securitisation transaction.
The $800 million RMBS issue was arranged by National Australia Bank who also marketed the transaction in conjunction with joint managers ANZ and Westpac.
The deal was upsized from the initial launch amount of $500 million following strong support from investors which resulted in the Class A notes being two times oversubscribed.
Heritage chief executive John Minz said the transaction was a great achievement given the uncertain market conditions.
“Heritage has come through the GFC very strongly. In the past few years we have been very successful in increasing the diversity of our funding sources but haven’t been active in the public securitisation space. Investors have not had access to a primary RMBS issue from Heritage since 2006 therefore the time was now right for us to return to the domestic market,” he said. .
“We road showed the deal and received a very positive reaction from investors, with good feedback about the Society and how we are positioned in the market. At $800m, this is the largest domestic transaction for Heritage surpassing the $750m deal completed in June 2006, which demonstrates the depth of support for our low risk style of securitisation issuance.”