2 June 2009
Purchase of Residential Mortgage-Backed Securities (RMBS) – Announcement of Further Mandates – Second Selection Round
In Operational Notice 9/2009 of 17 April 2009 the AOFM announced three mandates to arrange the issue of RMBS with the AOFM as a ‘cornerstone investor'. Issues of RMBS in connection with those mandates have now been priced with AOFM participation as follows:
- SMHL Securitisation Fund 2009-1, AOFM investment of $500 million;
- RESIMAC Premier Series 2009-1, AOFM investment of $458.8 million; and
- FirstMac Mortgage Funding Trust Series 2009-1 Trust, AOFM investment of $498.62 million.
This brings total AOFM participation in RMBS to $6.203 billion, with $2.750 billion in RMBS issues sponsored by Authorised Deposit-taking Institutions (ADIs) and $3.453 billion in RMBS issues sponsored by non-ADIs.
The AOFM has selected two further proposals from the second selection round for the allocation of mandates for RMBS issues to be priced by early July 2009. The AOFM has advised the parties concerned of its interest to participate in the following proposed issues:
- Westpac Banking Corporation as arranger and joint lead manager, and National Australia Bank Limited as joint lead manager, of an issue for Australian Central Credit Union Limited; and
- Australia and New Zealand Banking Group Limited as arranger and lead manager of an issue for Wide Bay Australia Limited.
Confirmation of the AOFM's investment in these proposed RMBS issues is subject to finalisation of acceptable documentation, confirmation that relevant conditions will be met and agreement on pricing.
The AOFM expects to announce a final set of mandates from the second selection round upon successful completion of the transactions announced today.