RAM to issue 1 million new secured income notes at A$100 each in wholesale placement

RAM expands secured income notes with A$100 million wholesale placement

RAM Income Capital Ltd (ASX:RAM) is set to issue up to 1 million new secured income notes at A$100 each, raising up to A$100 million through a wholesale placement to sophisticated and professional investors. This second tranche of RAM Secured Income Notes (ASX:RAMHA) will be issued on 12 August 2026 and carry the same terms as the first tranche listed in October 2025.

The placement is managed jointly by Westpac Institutional Bank, Ord Minnett, and Real Asset Management Pty Ltd, with Henley Underwriting acting as the arranger. Notably, the placement is not underwritten, introducing some execution risk depending on investor demand.

Investment strategy anchored in secured loans via Brighten

Proceeds from the placement will be deployed according to the investment strategy outlined in RAM’s September 2025 prospectus: investing in secured loans to gain indirect exposure to a diversified pool of loan and securitised investments. These assets are originated by Brighten Financial Pty Limited, RAM’s wholly owned non-bank lending arm, which manages a loan book exceeding A$6 billion.

Brighten’s portfolio is diversified across residential and commercial mortgages, with a strong emphasis on prime and near-prime lending secured by first mortgages. The portfolio’s weighted average loan-to-value ratio stands at a conservative 67%, with historical arrears and losses substantially below industry averages. RAM’s end-to-end ownership of credit risk through origination, servicing, and portfolio management underpins its credit quality.

Note terms and investor protections

The new notes will pay floating interest monthly, calculated as the one-month Bank Bill Swap Rate (BBSW) plus an initial margin of 3.00% per annum, stepping up to 3.25% after 10 April 2031. Interest is cumulative and deferrable without triggering default events, offering flexibility but also potential income timing risks for investors.

RAM Secured Income Notes are secured by a first-ranking charge over all assets of the issuer and rank pari-passu with existing tranches and RAM’s fixed-to-floating rate callable notes due 2033. Credit enhancement is provided through the simultaneous issue of Class A Preference Shares equal to 3% of the proceeds raised, designed to absorb initial losses and bolster noteholder protection.

Placement timetable and market implications

The placement was announced post-market on 27 July 2026, with the book open from 28 to 29 July and results expected before market open on 30 July. RAMHA trading on the ASX remains halted pending the placement outcome and is scheduled to resume on 30 July. Settlement and issuance of new notes are set for 11 and 12 August respectively, with trading of the new tranche commencing 13 August.

The issuer and investment manager highlight benefits to existing noteholders including increased portfolio diversification and potentially enhanced liquidity due to a broader investor base. However, the placement’s non-underwritten nature means that the final amount raised and market reception will be key to watch.

RAM Group’s integrated asset management and lending platform

RAM Income Capital is part of the broader Real Asset Management Group, which combines alternative income asset management with non-bank lending through Brighten. The group manages over A$8.8 billion in assets and has built a track record of steady growth and low credit losses over 16 years. Brighten’s loan book features more than 10,700 loans with historically low arrears and loss rates, supported by a robust credit approval process and diversified funding sources including multiple bank warehouses and RMBS programs.

This capital raise fits within RAM’s broader strategy of leveraging its integrated origination and asset management capabilities to deliver stable, secured income products to wholesale investors amid a higher interest rate environment.