Suncorp doubles RMBS offer
Suncorp-Metway Limited (SUN) doubled the size of its RMBS offer from $500 million to $1 billion in response to significant investor demand. The company said a total of 14 investors participated in the transaction with the majority of the Class A1 notes bought by domestic fund managers.
Suncorp said the Australian Office of Financial Management bought all of the Class A2 notes.
CEO, David Foster, said the issue further supports the bank’s strong funding and liquidity position, lengthens the balance sheet and underpins profitable growth for the company.
“The broad investor support in the A1 tranche was very pleasing, particularly with the backdrop of the current global market volatility,” Mr Foster said.
“It is a testament to the quality of Australian mortgages as collateral which is highly valued by investors.”
Suncorp said the notes are backed by a pool of prime residential, first ranking mortgage loans denominated in Australian dollars and originated by Suncorp.
The company said the notes are floating rate, principal pass-through, secured, limited recourse, rated securities.
As at 1542 AEST, Suncorp shares were up 10c to $8.11.
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