$300 million deal positions non-bank for continued growth
Non-bank lender Basecorp Finance has settled a $300 million Residential Mortgage Backed Security (RMBS) transaction.
This is the first RMBS transaction for the non-bank in 2022 and its third capital markets RMBS transaction to date.
Basecorp Finance prides itself on working closely with advisers and providing straightforward and specialist advice to New Zealand borrowers.
The company assists SME clients, as well as property purchasers with tailored mortgage solutions.
Basecorp Finance chief financial officer John Moody (pictured) said it was the most expensive deal to date and notes were rated AAA to BBB across six note classes by Fitch, with the transaction arranged by Westpac and lead managed by Westpac and BNZ.
“This now brings the volume of notes issued by Basecorp to $800 million since the start of 2021 – the most by any issuer in the NZ market over that period,” Moody said.
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The transaction positions Basecorp strongly for continued growth through 2022 despite a slowing property market. However, non-bank system growth continues to remain elevated and significantly above bank system growth.
“The entire team are so proud of this transaction,” he said.
“It concluded during a backdrop of rising economic and geopolitical concerns and we are very grateful for the continued support of Basecorp’s funding programme by investors.”
Moody said Basecorp’s focus was on consistency, relationships and price competitiveness.
“The new funding coupled with the competitive note pricing received across all tranches will allow us to offer a compelling proposition to advisers over the remainder of 2022,” he said.
Moody said the adviser channel had been a key part of Basecorp’s growth, with a book size now above $1bn following significant momentum in the last few years.
“The floating interest rates are currently risk priced from 6.95% post the most recent Reserve Bank of New Zealand official cash rate increase in May,” he said.
“The support from the adviser channel has been really pleasing as they are an integral part of our success and we are delighted to secure this funding to continue to support the channel.”
