Commonwealth Bank has completed its seventh global issuance of AUD 4.16 billion mortgaged backed securities through the Medallion Trust, its Mortgage Backed Securities (MBS) programme.
The assets comprise fixed and variable rate mortgage loans originated from the Bank’s home loan portfolio and from the portfolio of Homepath Pty Limited, a wholly owned subsidiary.
The deal is structured to include issuance of securities in three currencies. The pricing is as follows:
Class A-1 and A-3 securities are issued into the US and Euro markets under the SEC shelf programme, whilst Class A-2 securities are issued into the domestic market. The Class A-1 and A-3 Notes have an average life of 2.73 years, whilst the A-2 Notes have an average life of 2.64 years. The Class A-1, A-2 and A-3 Notes will be listed on the Irish Stock Exchange. There is also AUD 54 million of Class B subordinated notes.
This deal brings the total issuance to date under the Medallion global programme to nearly AUD19.3 billion. Marten Touw, the Group Treasurer at Commonwealth Bank, said "the deal received a very strong response from offshore and domestic investors; including Asian investors, who recognise the quality of the Medallion programme. We are very pleased with the pricing levels achieved in this transaction."
The transaction was joint-lead managed by Commonwealth Bank, Deutsche Bank Securities, Credit Suisse First Boston and Barclays Capital.