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Westpac launches issue

Westpac launches issue

(16 December 2009 – Australia) Westpac has become the first of the big four to launch a residential mortgage-backed securities (RBMS) issue in two years, signalling a reduction of dependence on the government’s guarantee scheme. The bank has announced that it will be selling A$920 million of class A notes, A$55 million of class B notes and A$25 billion of class C notes.

The issue consists of prime residential mortgages originated by the Westpac network of branches, home finance managers and by accredited brokers.

Westpac said in a statement that the RMBS will be issued to maintain the diversity of Westpac's funding base and continue the bank’s support for the Australian mortgage securitisation market.

This will be the first RMBS market issue by Westpac since 2007 and the first RMBS market issue by a major Australian bank since the commencement of the global financial crisis, reflecting growing investor demand, Westpac highlighted.

The issue, being lead by Westpac Institutional Bank, will create some much needed funding to cover higher liquidity levels proposed by the prudential regulator.
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