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
