Strong investor demand sees non-conforming RMBS transaction increased from $500 million
Australian Finance Group (AFG) has announced that its wholly owned subsidiary, AFG Securities, has successfully priced an upsized $700 million residential mortgage-backed securities (RMBS) transaction.
The non-conforming RMBS deal, AFG 2025-1NC, was initially set at $500 million but was increased to $700 million due to strong investor demand.
AFG chief executive David Bailey (pictured above) said the transaction attracted significant interest, with the final order book exceeding $1.7 billion. “The Class A1S to Class F notes were all publicly offered with interest received from more than 25 investors,” he said.
Bailey added that the broad investor participation enabled pricing inside guidance.
“The excellent coverage across notes enabled AFG 2025-1NC to price inside guidance and upsize to $700 million,” he said. “The RMBS transaction was well supported with several new domestic and international investors participating in the transaction, reflecting the strength of AFG Securities as a reliable and trusted issuer.”
According to Bailey, the Australian RMBS market continues to draw interest from local and international investors, supporting long-term market stability.
“Once again, we are very pleased to see the support of AFG Securities and the opportunity to provide a competitive lending alternative for our brokers and their customers,” Bailey said. “The support received for this transaction reflects our continued growth and ability to deliver exceptional results for our investors, our broker network and customers.”
Settlement for the transaction is scheduled for March 4.
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