Non-bank lender issues $1.25bn RMBS
La Trobe Financial has “effectively reopened” Australian debt capital markets with a $1.25bn RMBS raising.
It was the largest securitisation around the world since COVID-19 took hold in March and, according to the group, has confirmed Australian residential mortgages as a global safe harbour investment.
La Trobe not only saw support from Australian institutional investors, but global investment houses in Asia, the United States and Europe.
While the federal government’s Australian Office of Financial Management (AOFM) was closely involved with the deal, investor demand saw that no AOFM investment was required.
La Trobe chief treasurer and strategy officer Martin Barry said, “We welcomed three new investors to our already 46 investor-strong RMBS program and are delighted by the interest we have received both offshore and domestically as we build on our diverse investor base.
“We remain good stewards of other people’s capital and this enables us to obtain and maintain the trust of our clients – this is the real asset of the company.”
The proceeds of the issue will be used to continue writing home and business loans for Australians at a critical time in the history of the country’s economy.
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