AIMS successfully completes $400 M RMBS bond deal
18 July 2005 – AIMS Home Loans has completed its $400 million Residential Mortgage-Backed Securities (RMBS) bond issue launched in late June, receiving a very warm response from the domestic and offshore investor markets including China, Singapore and Hongkong.
The senior tranche, which received an AAA rating from Standard and Poor’s and Fitch Ratings, totalled $387.2 million and was priced 22 points over one month Bank Bill Swap Rate (BBSW).
Michael Brink, Treasurer and Head of Securitisation at AIMS Home Loans, says the price was an exceptional outcome for AIMS and indicative of the spread tightening that has occurred over the past 12 months.
“It was a very pleasing result, and in particular AIMS was pleased to see a very high level of investor participation out of Asia. This is important for AIMS as it continues to roll out the expansion of its mortgage operations into China, and as it looks to the same investor market to support its funding activities in China in the medium term. Not only this, the successful deal has further cemented AIMS’ position as a local issuer of RMBS and will help to raise AIMS’ profile in China as an experienced and skilled home lender and RMBS issuer”, Brink says.
One of the leading non-bank mortgage managers in Australia, AIMS funds its loan originations through its own bond issues, AIMS warehouse facilities and other funding programs.
The $400 million RMBS bond deal is AIMS’ fourth major RMBS bond issue, bringing to over $2.5 billion the total amount in RMBS bonds raised to date by AIMS since September 2000.
AIMS’ previous bond issues include: a $580 million tranche of RMBS issued in July 2004, a $580 million tranche of RMBS issued in July 2002, and a $270 million tranche of RMBS issued in September 2000. In addition, AIMS has participated in a number of non AIMS branded RMBS issues.
AIMS is one of the select few non-bank mortgage companies in Australia with its own securitisation program.
AIMS has been actively involved in mortgage-backed securitisation in China. George Wang, Executive Director of the AIMS Group, says “the combination of AIMS’ experience in Australian MBS market and AIMS’ deep involvement in China’s home loan lending market is valuable in assisting China’s mortgage-backed securitisation market moving forward. Such western experience plus our local knowledge of China has also attracted many lenders and MBS service providers both in China and outside China to work together with AIMS”.
About AIMS Home Loans
AIMS Home Loans Pty Ltd is an Australian-owned, non-bank Mortgage Lender established in 1991. It is one of the first non-bank mortgage managers in Australia. AIMS offers a wide array of residential and commercial loans and other products tailored to meet each customer’s needs. It is now also offering consumers the AIMS Advantage American Express Credit Card.
AIMS has won over 30 industry-recognised awards in the last five years for excellence in mortgages. It aims to bring financial services back to the community by expanding its national branch network of community-focused finance centres.
Unlike other mortgage lenders, AIMS raises funds by issuing its own Residential Mortgage Backed Securities (RMBS), allowing it to offer more flexible lending policies with low rates and no hidden fees to customers. AIMS has directly and indirectly issued over $2 billion in RMBS bonds. Its securities are rated AAA by the prestigious Standard & Poor’s and Fitch Ratings.