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Residential Property

La Trobe Financial prices $750 million RMBS

La Trobe Financial has priced its sixth residential mortgage-backed securities (RMBS) issue, La Trobe Financial Capital Markets Trust 2018-1, at $750 million.

The firm’s chief corporate treasurer, Martin Barry, said the pricing of the sixth RMBS transaction comes after an extensive international and Australian roadshow.

“We welcome nine new investors to our RMBS program and are delighted by the support we have received on this transaction both offshore and in Australia as we continue to build on our already strong and diverse investor base,” Barry said.

“With this RMBS transaction we achieved record pricing on the back of volatile global market conditions and it is the most participated investor transaction we have seen.”

La Trobe Financial head of debt capital markets Ryan Harkness said the pricing and level of oversubscription were a strong endorsement of the assets and expertise of Australia’s oldest non-bank lender.

“With current trend loan originations now tipping circa $7 billion per year, this was a practical step to complement current institutional mandates and our nationally and internationally awarded $2.1 billion retail credit fund,” Harkness said.

Since 2014, La Trobe Financial has issued $2.2 billion of RMBS to Australian and overseas institutional investors. It said it will make further announcements shortly.

The firm is 80 per cent owned by alternative asset manager Blackstone, which has US$434 billion of funds under management worldwide.

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