Deal upsized from $750 million, drawing strong offshore demand despite global uncertainty
Firstmac Limited has priced a $2 billion residential mortgage-backed securities (RMBS) transaction – the largest Australian RMBS deal since the outbreak of the Iran War rattled global capital markets – after institutional demand pushed the issue well beyond its initial $750 million target.
The Brisbane-based non-bank lender, which manages $22 billion in residential mortgages, priced the transaction at 1.08% over the one-month bank bill swap rate (BBSW), a result its chief financial officer described as a strong outcome against a backdrop of global uncertainty.
"To increase the transaction from $750 million to $2 billion in the current market is a very strong result and reflects the confidence investors have in the quality of Firstmac's loans,” said chief financial officer James Austin (pictured). “The Iran War has clearly unsettled markets, with some investors sitting on their hands while they reassess relative value and the broader economic outlook."
The transaction was arranged by NAB, with ANZ and Commonwealth Bank among others acting as joint lead managers.
It brings Firstmac's total RMBS and asset-backed securities (ABS) issuance since 2003 to more than $62 billion.
Investor participation spanned both domestic institutions and offshore buyers, with interest drawn from the UK, Italy, South-East Asia, and Japan.
“Foreign investors were very well briefed on the Australian market and asked detailed questions about how the Budget changes may affect property investors and lenders,” said Austin. “The fact they invested anyway is a strong vote of confidence in Firstmac’s loan book, our credit quality and the resilience of the Australian RMBS market.”
2026’s headline securitisations
The Firstmac result arrives in a year that has already seen substantial RMBS supply from Australian non-bank lenders.
In February 2026, Australian Finance Group (AFG) priced its largest-ever RMBS through its AFG Securities arm, a $1.2 billion deal upsized from $750 million, with AFG chief executive David Bailey calling the outcome "a fantastic result" and citing strong engagement from more than 30 domestic and offshore investors.
Also in February 2026, MA Money priced a $1.25 billion RMBS that included the lender's first-ever foreign currency tranche. MA Money treasurer Akeshni Gour described the transaction as "our largest issuance to date" and said it demonstrated "the depth of confidence in our business model and asset quality".
Days later, ColCap Financial Group completed a record-breaking $2.7 billion RMBS – the largest-ever for an Australian non-bank – upsized from an initial $1 billion guide. ColCap chief executive Andrew Chepul said the transaction demonstrated "the attractiveness of the Australian mortgage market to investors offshore and onshore".
