17 November 2008
Purchase of Residential Mortgage-Backed Securities (RMBS) – Announcement of Further Mandates
In Operational 13/2008 of 29 October 2008 the AOFM announced two 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 and the AOFM has confirmed its participation as an investor in the following issues:
- FirstMac Mortgage Funding Trust Series 2-2008 (AOFM investment of $496 million); and
- SMHL Securitisation Fund 2008-2 (AOFM investment of $500 million).
The AOFM has selected two further proposals from the first selection round for the allocation of mandates for RMBS issues to be priced by end-December 2008. The AOFM has advised the parties connected with these proposals that it is interested in investing up to $500 million each in the RMBS issues they have proposed. These parties are:
- The Royal Bank of Scotland, Commonwealth Bank of Australia and Macquarie Bank as joint lead managers for an issue for which Challenger Mortgage Management Pty Ltd would be the mortgage manager and servicer; and
- National Australia Bank and Barclays Bank as joint lead managers for an issue for which RESIMAC Limited 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.
A Request for Proposals for the second selection round is expected to be issued in early December 2008 with a closing date for the lodgement of proposals in mid-January 2009.