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Australian Finance Group Ltd (AFG) has successfully priced its largest ever residential mortgage-backed securities (RMBS) transaction, raising A$1.2 billion through its wholly-owned AFG Securities Pty Ltd — up from an initial A$750 million guidance amid robust investor interest. The deal drew orders from more than 30 domestic and international accounts, with competitive pricing seen across all classes.
AFG Chief Executive David Bailey described the outcome as a “fantastic result” and a strong signal of confidence in the Australian RMBS market. The issuance, part of AFG’s ongoing long-term funding strategy, will support the company’s mortgage portfolios and reinforce liquidity for brokers and borrowers.
Background:
AFG is one of Australia’s leading non-bank mortgage aggregators and lenders, focused on residential home loans, consumer asset finance and commercial lending. Listed on the ASX, the company distributes its own branded home loan products through a network of thousands of mortgage brokers across the country and funds a significant portion of its loan book through RMBS issuance programs.
The A$1.2 billion transaction continues a track record of securitisation activity for AFG. In recent years, the company has repeatedly tapped RMBS markets — including a A$700 million non-conforming RMBS that was upsized due to strong demand, and a A$1 billion prime RMBS issuance that tied previous volume records — reflecting sustained investment appetite for Australian mortgage credit.
AFG’s RMBS program has played a key role in diversifying funding sources, enabling competitive lending alternatives and bolstering the resilience of its broker-introduced mortgage operations in a dynamic capital markets environment.
