Commonwealth Bank launches ninth global Australian mortgage securitisation
8 March 2006
Commonwealth Bank has launched its ninth global issuance of A$5.46 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.
Class A-1 of USD
|2,000 million||3m US LIBOR + 5bp|
Class A-2 of AUD
|2,000 million||1m BBSW + 13bp|
Class A-3 of Euro
|450 million||3m Euribor + 7bp|
Class A-1 and A-3 securities are issued into the US and Euro markets. Class A-1 securities are registered under the SEC shelf programme and Regulation AB compliant. Class A-2 securities are issued into the domestic market. The Class A-1 and A-3 Notes have an average life of 2.71 years, whilst the A-2 Notes have a weighed average life of 2.63 years. There is also AUD$66 million of Class B subordinated notes.
This deal brings the total issuance to date under the Medallion global programme to approximately A$26.6bn. Marten Touw, the Group Treasurer at Commonwealth Bank, said "the deal received exceptional response from offshore and domestic investors, who recognise the quality of the Medallion programme. We are very pleased with the volume and pricing levels achieved in this transaction."
The transaction is joint-lead managed by Commonwealth Bank, Credit Suisse, Deutsche Bank Securities and HSBC Bank.
- Structural enhancements include mortgage insurance policies from Genworth Financial Mortgage Insurance Pty Ltd (rated AA by S&P), and a pool policy from PMI Mortgage Insurance Ltd. (rated AA by S&P).
- Commonwealth Bank will continue as Servicer of the loans. Securitisation Advisory Services Pty Ltd, a wholly owned subsidiary of the Bank, will be the Manager of the Trust.
- The Bank will also provide a A$49.5 m liquidity facility, a A$50 m redraw facility and act as the interest rate and currency hedge provider. The structure also allows for principal to be used for income shortfalls once the liquidity facility has been fully drawn.
- The trustee of Medallion Trust Series 2006-1G is Perpetual Trustee Company Limited.
- The Class A notes are expected to be rated AAA/Aaa/AAA by Standard and Poor’s, Moody’s and Fitch. The Class B notes are expected to be rated AA/Aa2/AA by Standard and Poor’s, Moody’s and Fitch.
- The class A-1, A-3 and Class B notes will receive principal and interest payments quarterly. The class A-2 notes will receive principal and interest payments monthly.
For further information
General Manager, Media and Issues Management
Tel (02) 9378 3437
Mob: 0414 789 649