28 January 2010
Purchase Of RMBS – Announcement of Serial Investment Arrangements
In Operational Notice 26/2009 of 8 December 2009 the AOFM invited the lodgement of proposals for the AOFM to invest in a series of separate RMBS issues (a "serial investment arrangement") to lenders who have been largely or wholly reliant on securitisation markets to fund mortgage lending. The closing date for the lodgement of proposals was 15 January 2010.
Six proposals were received. Following an assessment of the proposals the AOFM has advised parties connected with five of the proposals that it is interested in investing in the proposed issues under a serial investment arrangement. The total amount to be invested by the AOFM in these serial investment arrangements is up to $3.4 billion.
These parties are:
- AMP Bank Limited;
- Firstmac Limited;
- Liberty Financial Pty Limited;
- Members Equity Bank Pty Limited; and
- Resimac Limited.
Each serial investment will end at the earlier of 15 December 2010 or upon the relevant party providing written notice to the AOFM. The terms of each serial investment arrangement have been agreed with each successful applicant. Confirmation of the AOFM's investment in each proposed RMBS issue under a serial investment arrangement is subject to a number of conditions as set out in Operational Notice 26/2009 including the issuer meeting its undertakings in relation to new mortgage lending, finalisation of acceptable documentation, agreement on pricing, and any other conditions specified by the AOFM.
There will be no further serial investment arrangements entered into pursuant to Operational Notice 26/2009. All other issuers may lodge proposals under Operational Notice No. 25/2009 (the reverse enquiry approach).