29 October 2008
Purchase of Residential Mortgage-Backed Securities (RMBS) - Announcement of Mandates
In Operational Notice 10/2008 of 13 October 2008 the AOFM invited the lodgement of proposals for the first selection round for the allocation of mandates to arrange the issue of RMBS with the AOFM as a 'cornerstone investor'. The closing date for the lodgement of proposals was 24 October 2008.
Twelve proposals that comply with the requirements set by the AOFM were received. Following an assessment of the proposals the AOFM has advised parties connected with two of the proposals that it is interested in investing up to $500 million each in the RMBS issues they have proposed. These parties are:
- Australian and New Zealand Banking Group, HSBC and Macquarie Bank as joint lead managers for an issue for which FirstMac Limited would be the mortgage manager and servicer; and
- Westpac Banking Corporation and Credit Suisse as joint lead managers for an issue for which Members Equity Bank Pty Ltd would be the mortgage manager and servicer.
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. It is expected that the proposed issues will be priced by mid-November 2008.
The AOFM plans to select a further two proposals from the first selection round in mid-November 2008 for RMBS issues to be priced prior to end-December 2008.
A Request for Proposals for the second selection round is expected to be issued in late November 2008. This will be for RMBS issues to be completed by February or March 2009.