Resimac’s New A$1bn Bond Raises Questions on Funding Costs and Strategy
Resimac Group has successfully settled a A$1 billion non-conforming residential mortgage backed securities transaction, marking its second such bond issuance this year. The deal attracted strong domestic and offshore investor interest, reinforcing Resimac’s diversified funding strategy.
- A$1 billion non-conforming residential mortgage bond settled
- Second non-conforming bond issuance by Resimac in 2025
- Strong participation from domestic and offshore real money investors
- Multiple bond tranches with varying coupons and credit support
- Transaction arranged by Barrenjoey Markets with Barclays, Citi, and NAB as joint lead managers
Resimac’s Latest Bond Issuance
Resimac Group Ltd (ASX – RMC) has confirmed the settlement of a significant A$1 billion non-conforming residential mortgage backed securities transaction, named Resimac Bastille 2025-2NC. This marks the company’s second non-conforming bond issuance in the 2025 calendar year, underscoring its ongoing commitment to diversified funding sources beyond traditional banking channels.
Investor Appetite and Structure
The bond issuance attracted robust demand from both domestic and offshore real money investors, reflecting confidence in Resimac’s credit profile and the underlying mortgage assets. The senior tranche was priced at 105 basis points over the 1-month BBSW benchmark rate, a competitive spread that highlights strong market interest.
The transaction was structured across multiple tranches, each with different coupon rates and credit support levels, ranging from 0.75% to 3.85% coupons and credit support from 18% down to none for the lowest tranche. Moody’s and S&P assigned high investment-grade ratings to the senior tranches, reinforcing the quality of the securitisation.
Strategic Funding and Market Position
Resimac’s ability to execute this sizeable bond deal demonstrates its access to a diversified funding platform, which includes short-term warehouse lines and a global securitisation program. With a loan portfolio nearing $13 billion and total assets under management exceeding $15.7 billion, Resimac continues to solidify its position as a leading non-bank lender in Australia and New Zealand.
The transaction was arranged by Barrenjoey Markets Pty Limited, with Barclays Bank PLC, Citigroup Global Markets Australia Pty Limited, and National Australia Bank Limited acting as joint lead managers, indicating strong institutional support for the deal.
Looking Ahead
While the announcement does not detail the specific use of proceeds or the impact on Resimac’s cost of funds, the successful placement of this bond is likely to support ongoing growth in its mortgage and asset finance portfolios. Investors will be watching closely for how this issuance influences Resimac’s funding costs and margins in upcoming financial disclosures.
Bottom Line?
Resimac’s latest A$1 billion bond deal reinforces its funding resilience, setting the stage for future growth amid evolving market conditions.
Questions in the middle?
- How will this bond issuance affect Resimac’s overall funding costs and profitability?
- What are the implications for Resimac’s credit ratings and investor appetite going forward?
- Will Resimac continue to increase its reliance on non-conforming mortgage securitisations?
