Resimac Group has completed its third bond issuance of 2026, raising A$1 billion through a prime residential mortgage-backed securities deal priced at a premium over BBSW. The transaction attracted robust domestic and offshore real money investor participation across multiple tranches.
- A$1 billion prime residential mortgage bond issued
- Senior tranche priced at 108 basis points over 1-month BBSW
- Strong real money investor demand from domestic and offshore accounts
- Multiple tranches with ratings from AAA to B
- National Australia Bank led the deal with Barclays, Deutsche Bank, and UOB
Third Bond Issuance for 2026 Strengthens Resimac’s Funding
Resimac Group Ltd (ASX:RMC) has successfully settled a A$1 billion prime residential mortgage-backed securities (RMBS) transaction, named Resimac Premier 2026-2. This marks the lender’s third bond issuance this calendar year, reinforcing its active engagement in capital markets to support its lending operations.
The senior tranche of the deal, which comprised A$760 million of the issuance, priced at 108 basis points above the 1-month Bank Bill Swap Rate (BBSW). This pricing reflects a solid appetite from real money investors both domestically and offshore, a key factor in securing competitive funding costs amid ongoing market volatility.
Diverse Tranche Structure Offers Varying Risk Profiles
The transaction was structured into multiple tranches totalling A$1 billion, with credit ratings ranging from AAA down to B. The AAA-rated tranches, including A1, A2, and AB classes, collectively accounted for A$950 million and featured coupons between 0.75% and 1.25% over BBSW, with weighted average lives (WAL) from 0.6 to 4.4 years.
Lower-rated tranches such as B, C, D, E, and F offered higher coupons, reflecting increased credit risk and longer WALs around 4.4 years. The presence of these tranches provides investors with tailored risk-return options, while credit enhancement levels ranged from 0.35% to 10%, underpinning the deal’s credit quality.
Institutional Backing and Market Position
National Australia Bank Limited served as the Arranger for the transaction, with Barclays Bank PLC, Deutsche Bank AG, and United Overseas Bank acting as Joint Lead Managers. Their involvement underscores the deal’s complexity and the confidence placed in Resimac’s credit profile.
Resimac’s fully integrated business model, which spans originating, servicing, and funding prime and non-conforming residential mortgages alongside asset finance products, supports its ability to access diversified funding sources. It currently manages over $13.6 billion in home loans and $2.1 billion in asset finance, with total assets under management nearing $16 billion.
This latest RMBS issuance adds to Resimac’s extensive track record, having issued over $54 billion in bonds since 1987. The company’s diversified funding platform includes multiple warehouse lines and global securitisation programs, providing flexibility to manage liquidity and capital efficiently.
Bottom Line?
Resimac’s latest A$1 billion RMBS deal highlights its ongoing access to capital markets with strong investor support, positioning the lender well to fund growth in a competitive environment.
Questions in the middle?
- How will the pricing of this bond issuance affect Resimac’s overall funding costs in 2026?
- Will Resimac continue to balance prime and non-conforming mortgage securitisations in its funding mix?
- How might shifts in interest rates and credit conditions impact demand for Resimac’s future RMBS deals?