It is the largest-ever RMBS funding raise in New Zealand
Non-bank lender Avanti Finance has raised a whopping $350 million in its latest Residential Mortgage Backed Security (RMBS) issuance, the largest amount sourced from this kind of transaction in New Zealand.
The non-bank lender stated that it will use the funds from the latest RMBS funding raise to grow its mortgage loan book and support continued growth in the rest of its business.
“With this increase in our funding capacity, we’re excited to be able to continue to support the mortgage adviser community, who have been an integral part of our success in this market,” said Avanti Finance CEO Mark Mountcastle.
As a non-bank lender, Avanti Finance provides a wide range of financial solutions in New Zealand, including home loans, personal loans, vehicle loans, and business loans.
Most recently, the non-bank lender released several new products aimed at the “near prime” market to offer an alternative to borrowers with strong overall profiles but with borrowing situations that prevented them from securing finance from a bank.
“We’ve seen a significant amount of interest in our new near prime home loan product and car loans, as well as in our open bridging solutions,” Mountcastle said.
“It’s our innovative products that are a big reason for our continued success. They meet New Zealanders where they are, not where the banks need them to be. It’s why investors, both current and new, have shown such interest in assisting the funding of these products.”