Liberty settles $1.1 billion prime RMBS issue

23 Feb 2022 |

Liberty Financial (Liberty) today priced its A$1.1 billion Liberty PRIME Series 2022-1 RMBS issue, its seventieth term securitisation. This is also Liberty’s tenth securitisation of securities backed by a portfolio of prime mortgages.

Westpac Banking Corporation (WBC) is the sole Arranger and a Joint Lead Manager, along with BofA Securities, Commonwealth Bank of Australia, Deutsche Bank AG Sydney Branch, National Australia Bank and SMBC Nikko Capital Markets.

The Liberty PRIME Series 2022-1 transaction comprises A$1.1 billion of notes rated by Moody’s Investors Service and Fitch Ratings (AAA notes only).

  • The A$968 million Class A1 notes rated Aaa(sf)/AAAsf, with a weighted average life of about 2.3 years, priced at a margin of 95 basis points over one month BBSW.

The pricing of the Class A2, AB, B, C, D, E and F notes rated Aaa(sf), Aaa(sf), Aa2(sf), A2(sf), Baa2(sf), Ba2(sf) and B2(sf), respectively, is not disclosed.

The issue consists of a pool of prime residential mortgages with a weighted average loan-to-value ratio of 66%.

Peter Riedel, Chief Financial Officer at Liberty, said: “Liberty is a leader in providing households and small businesses with the freedom to choose from a wide range of products and services to meet their financial needs. We are grateful for the support investors have extended to our business.”

Liberty has a rating of “STRONG” from Standard & Poor’s for the servicing of prime and non-prime mortgages as well as for servicing auto loans and commercial mortgages. Liberty is also Australia’s only investment grade rated non-bank issuer (BBB-, outlook positive by S&P) and one of only a few lenders with an unblemished capital markets record with no ratings downgrades or charge-offs ever experienced by its securitisation program.

© Liberty Financial Group Limited (ACN 125 611 574) and Liberty Fiduciary Ltd (ACN 119 884 623).