Bendigo lures foreign buyers
(14 July 2011 – Australia) Regional lender Bendigo & Adelaide Bank will offer A$1 billion in residential mortgage-backed securities in its first offering for 2011.
Its Torrens Series 2011-1 Trust offering will be backed by prime residential mortgages issued by the Victoria-based bank.
The deal is unique in that the Class A1 notes will be denominated in Japanese yen, in a move specifically aimed at enticing more foreign buyers into the market for Australian RMBS.
While a government program to purchase RMBS has helped the market rebound in the past 18 months, foreign buyers have been slow to develop, with pricing on recent deals remaining flat.
Bendigo & Adelaide said it would aim to sell A$230 million in the yen-denominated notes, with final tranche sizes determined by market conditions. The regional lender is a regular issuer of RMBS, having sold roughly A$3 billion in three separate deals since late 2009.
Deutsche Bank is lead manager and bookrunner of the yen notes. National Australia Bank, Westpac and Deutsche Bank are lead managers for the domestic notes.
The deal is unique in that the Class A1 notes will be denominated in Japanese yen, in a move specifically aimed at enticing more foreign buyers into the market for Australian RMBS.
While a government program to purchase RMBS has helped the market rebound in the past 18 months, foreign buyers have been slow to develop, with pricing on recent deals remaining flat.
Bendigo & Adelaide said it would aim to sell A$230 million in the yen-denominated notes, with final tranche sizes determined by market conditions. The regional lender is a regular issuer of RMBS, having sold roughly A$3 billion in three separate deals since late 2009.
Deutsche Bank is lead manager and bookrunner of the yen notes. National Australia Bank, Westpac and Deutsche Bank are lead managers for the domestic notes.
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