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Non-bank lender Resimac Group has announced the completion of its first residential mortgage-backed securities (RMBS) deal this year valued at $1.5bn, its largest transaction since 2006.
Resimac's latest RMBS raising represents 12% of the total funding of its home loan assets under management, which was at $12.9bn as of the end of last year.
Andrew Marsden, treasurer at Resimac Group, said this deal is crucial given that as a non-bank, the group depends on its global securitisation program.
"Investor appetite for this program continues to be pleasingly strong. We are looking forward to bringing further bond transactions to the market this year, and expect market conditions to remain supportive to our growth objectives throughout 2021," he said.
Marsden said the completion of the funding puts the lender in a good position especially given the strong projections for home-loan activity for the rest of the year.
"Our funding initiatives should provide a strong platform to take advantage of opportunities in the Australian mortgage market," he said.
Resimac reported robust results for the last half-year period, with profits reaching $50.5m. The group attributes the results to the 14% increase in its home loan assets.
