Commonwealth Bank launches fifth Global Australian Mortgage Securitisation
14 March 2003
The Commonwealth Bank has priced its fifth global issuance of mortgaged backed securities through Medallion Trust, its Mortgage Backed Securities (MBS) program.
The assets comprise fixed and variable rate 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 a class A of US$1,000 million issued into the US and Euro markets which will be registered with the SEC. The Class A Notes have an average life of 3 years and were priced at a margin of 19 basis points over 3 month US LIBOR. There is also $25 million of Class B subordinated notes.
This deal brings the total issuance to date under the Medallion global program to nearly A$11.20bn.
Marten Touw, Group Treasurer at the Commonwealth Bank, said, "The deal received a very strong response from offshore investors who recognised both the quality of the Medallion program and the Bank’s commitment to regular issuance in the global market through the SEC shelf. The 19 basis point margin on the Class A Notes was better than any Australian MBS issue achieved this year, indicating investors flight to quality in these uncertain times in the world. Demand was strong in both Europe and the US with new investors in both markets as well as good interest out of Asia."
The transaction was lead managed by JPMorgan and the Commonwealth Bank. Co-managers for the offshore issue are Credit Suisse First Boston, Deutsche Bank Securities and Nomura International