‘It's fitting that our latest RMBS, upsized on the back of investor demand, comes as we prepare to celebrate 20 years as a non-bank lender in Australia’
ColCap Financial Group, the non-bank lender and parent company of Granite Home Loans, has priced a $3 billion prime residential mortgage-backed securities (RMBS) transaction – the largest RMBS ever issued by an Australian non-bank lender – just weeks before the group marks two decades in the market.
The Triton Bond Trust 2026-2 issue, announced this Friday, was upsized from an initial guide of $1 billion after strong demand from domestic and international investors. The transaction was secured over a diversified portfolio of prime Australian mortgages.
ColCap chief executive and co-founder Andrew Chepul (pictured, right) called it "a testament to the value we continue to create for our investors, our partners and our customers".
"It's fitting that our latest RMBS, upsized on the back of investor demand, comes as we prepare to celebrate 20 years as a non-bank lender in Australia," he added.
The new transaction eclipses ColCap's own previous benchmark, a $2.7 billion RMBS priced in February that set a non-bank record at the time and was itself upsized from a $1 billion guide.
Chepul called that deal "a sign to the broker market that we've never been better placed to offer brokers highly competitive, innovative products", while treasurer David Carroll noted Australia's stable regulatory environment and economy was appealing to international investors.
Built on 20 years of relationships
ColCap co-founder and chief operating officer Ilias Pavlopoulos (pictured, left) said the milestone reflected relationships built since the group's earliest days, adding that ColCap set out from the beginning to make an impact through prime mortgage lending by providing innovative product offerings in areas often underserved by Australia's banks.
Pavlopoulos pointed to the group's multi-channel distribution strategy – including its 2012 acquisition of Origin Mortgage Management Services, Australia's oldest mortgage management book, from ANZ Bank – as underpinning ColCap's growth.
"Third party brokers have since embraced our offering, as we seek to deliver competitively priced home loans with features to suit client needs. We look forward to building on this as we look at strategic innovation and growth opportunities in the current market," he said.
Chepul struck a similar note on the group's origins. "We started out just before the GFC [Global Financial Crisis], and many thought we wouldn't make it through," he said. "One thing that served us then is seeing opportunity where others see adversity – it's an outlook that's a part of us now as we continue to finance what's next."
A $37 billion milestone
ColCap's latest deal takes its total prime RMBS issuance since 2006 to approximately $37 billion across its Triton, Vermillion and Molossus programs in Australia and the UK. Pavlopoulos noted that ColCap now holds $23 billion in assets under management, with lending operations spanning Australia and the UK.
The record demand reflected the strength of the underlying collateral, which carries an average loan-to-value ratio of just over 64%. "The ability to upsize our latest Triton issuance to a record level reflects the strength of the long-term relationships we have built with investors over many years," said Carroll.
Beyond Granite Home Loans, ColCap's distribution footprint spans white-label offering Zeus by LMG – which recently passed $1 billion in originations less than 12 months after launch – along with online lender Homestar Finance and strata finance provider Austrata Finance.
National Australia Bank (NAB) acted as arranger and lead manager on the $3 billion issuance, alongside Commonwealth Bank of Australia, DBS Bank, Deutsche Bank, Natixis, RBC Capital Markets, Standard Chartered Bank, United Overseas Bank and Westpac Institutional Bank. The transaction is drawn from ColCap's Triton program, which funds origination through brands including Granite Home Loans and Zeus by LMG.
