Corrs Chambers Westgarth has advised Member’s Equity Bank (now ME Bank) on its A$276 million Maxis Loans Securitisation Fund 2009-1 deal.
This is the first public issue of Australian residential mortgage-backed securities (RMBS) to occur without government support since October 2008.
The issue of the AAA rated RMBS out of the Maxis Loans securitisation programme has been reported to be one of the year’s first publicly issued RMBSs without government support worldwide.
Westpac Institutional Bank acted as the arranger and underwriter on the issue.
Corrs partner John Munton said: “The securitisation market is showing signs of reopening for business. This deal will also relieve the pressure on government, who have so far provided around $8 billion of investment for the RMBS market through cornerstone investments by the Australian Office of Financial Management.”
Paul Garvey, manager, financial markets, ME Bank said: “Maxis SF 2009-1 highlights an increased willingness for investors to identify opportunities to invest in high quality investments and free-up excessive cash holdings. The deal was nearly twice oversubscribed”.
The issue of the Maxis SF 2009-1 RMBS into the public market is part of the ME Bank’s continued funding strategy.
Corrs advised ME Bank on all aspects of the deal, including preparing disclosure documentation and underlying transaction documents and providing taxation and regulatory advice.
The Corrs team was led by John Munton, Craig Milner and Scott Millar.
The deal is expected to settle on 14 September 2009.