17 February 2009
Purchase of Residential Mortgage-Backed Securities (RMBS) - Announcement of Mandates - Second Selection Round
In Operational Notice 17/2008 of 18 December 2008 the AOFM invited the lodgement of proposals for the second selection round for the allocation of mandates to arrange the issue of RMBS with the AOFM as a 'cornerstone investor'. The closing date for the lodgement of proposals was 30 January 2009.
Seventeen proposals that comply with the requirements set by the AOFM were received. Following an assessment of the proposals the AOFM has advised parties connected with three of the proposals that it is interested in investing in these proposed issues.
These parties are:
- Westpac Banking Corporation as arranger and lead manager of an issue for Credit Union Australia Ltd;
- Deutsche Bank AG and Westpac Banking Corporation as joint arrangers and joint lead managers of an issue for AMP Bank Ltd; and
- Deutsche Bank AG as arranger and joint lead manager and nabCapital (a division of National Australia Bank Ltd) as joint lead manager of an issue for Bendigo and Adelaide Bank Ltd.
Confirmation of the AOFM's investment in these proposed RMBS issues is subject to a number of conditions including finalisation of acceptable documentation, confirmation that relevant conditions will be met and agreement on pricing. It is expected that the issues will be priced by mid March 2009.
The AOFM will continue to review the remaining complying proposals, with further AOFM investment mandates announced in due course.