NAB prices National RMBS Trust 2011-2 transaction

21 September 2011

National Australia Bank (NAB) has today priced Class A1 and Class A2 tranches of a $1.5 billion Residential Mortgage Backed Securities (RMBS) transaction backed by over 5,000 residential mortgage loans originated and serviced by NAB.

The issue, called National RMBS Trust 2011-2, is NAB’s second for 2011 and the first public RMBS issue in Australia since mid-July.

The transaction included a Class A2 tranche with an expected weighted average life equal to 3 years that was placed with domestic and offshore investors. The A2 tranche represented 72% of the total Class A tranche.

The transaction also included a 2 year soft bullet which was issued in US dollars to meet investor interest identified for Australian RMBS (28% of total Class A tranche).

The combined WAL for the entire Class A tranche is expected to be 3.6 years, delivering matched funding for the National RMBS Trust 2011-2 portfolio of mortgage loans.

Note Class Note Type Issue Size Ratings S&P/Fitch Initial Credit Support Interest Rate Expected WAL
A1 Bullet FRN US$401m AAA/AAA 7.0% 3m USD Libor + 115bp 2.0 years*
A2 Pass though FRN A$1,005m AAA/AAA 7.0% 1m BBSW + 120bp 3.0 years
B Pass though FRN A$75m BBB/A 2.0% Not disclosed 6.4 years
C Pass though FRN A$30m NR/NR Nil Not disclosed 6.4 years


* Scheduled maturity

NAB was the sole lead manager and arranger on the transaction.

Media contact
Cherry Dinh
M: +61 (0) 467 737 734