17 April 2009
Purchase of Residential Mortgage-Backed Securities (RMBS) - Announcement of Further Mandates - Second Selection Round
In Operational Notice 7/2009 of 24 March 2009 the AOFM announced three mandates to arrange the issue of RMBS with the AOFM as a 'cornerstone investor'. Issues of RMBS in connection with those mandates have now been priced with AOFM participation as follows:
- Series 2009-1 REDS Trust, AOFM investment of $500 million;
- Liberty PRIME Series 2009-1, AOFM investment of $500 million; and
- Challenger Millennium Series 2009-1 Trust, AOFM investment of $500 million.
The AOFM has selected three further proposals from the second selection round for the allocation of mandates for RMBS issues to be priced by the end of May 2009. The AOFM has advised the parties concerned of its interest to participate in the following proposed issues:
- Commonwealth Bank of Australia as arranger and joint lead manager, and Australia and New Zealand Banking Group Limited and National Australia Bank Limited as joint lead managers, of an issue for Members Equity Bank Pty Limited;
- Macquarie Bank Limited as arranger and joint lead manager, and Australia and New Zealand Banking Group Limited and HSBC Bank Australia Limited as joint lead managers, of an issue for Firstmac Limited; and
- National Australia Bank Limited as arranger and joint lead manager, and Deutsche Bank as joint lead manager, of an issue for Resimac Limited.
Confirmation of the AOFM's investment in these proposed RMBS issues is subject to finalisation of acceptable documentation, confirmation that relevant conditions will be met and agreement on pricing.
The AOFM will continue to review the remaining complying proposals from the second selection round, with further AOFM investment mandates expected to be announced in due course.