ABSF update and results of first round of ABSF investments
2 April 2020
The AOFM called for proposals for the first round of ABSF investments on 16 Dec 2019 and indicated that it expected to announce its decision by early in the second quarter of 2020.
The AOFM advises that it intends to invest the first tranche of $250 million in securities issued by a warehouse vehicle sponsored by Judo Bank, subject to satisfactory completion of the documentation process.
The AOFM also intends to invest a further $250 million in a different security class issued by the same warehouse facility on a temporary basis. These funds will be allocated from the Structured Finance Support Fund (SFSF).
Shortlisted proponents from the first round of ABSF investments are advised that their proposals will be automatically considered for investment by the SFSF. However if they wish to refresh their proposal and/or provide supplementary information, they should do so after reviewing all material on the SFSF webpage (including legislation, rules and directions).
First round ABSF proponents who were advised that their proposals were ineligible for consideration should carefully review the material on this page, as the constraints on the ABSF also largely apply to the SFSF, including the proscription of first loss investments.
The AOFM had intended to announce a call for a second round of ABSF proposals prior to 1 July 2020. However the AOFM now intends to make an assessment of market conditions in early July 2020 before proceeding. In the meantime, potential proponents are advised that the SFSF has sufficient flexibility within its mandate to accommodate proposals that would be within the scope of the ABSF.
Challenger Investment Partners and Herbert Smith Freehills have acted as advisers to the AOFM on the Judo Bank warehouse transaction. Société Générale, Sydney Branch has acted as structurer and arranger of the transaction.