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.
M: +61 (0) 467 737 734