Bendigo Bank prices $400m Banksia Issue
Bendigo Bank today priced its $400M Banksia Trust Series 2001-1 mortgage backed securitisation issue at the tight end of price expectations.
The $216M A1 fixed rate tranche priced at 28 basis points over the 3 year swap rate, the $174M A2 floating rate tranche priced at 39 basis points over quarterly BBSW and the subordinated $10M B floating rate note tranche priced at 55 basis points over quarterly BBSW.
The Lead Manager for the deal is Deutsche Bank. Westpac Banking Corporation and Commonwealth Bank of Australia are Co-Managers.
The weighted average margin over time ("WAMOT") on the deal is 33.3 basis points over a weighted average life of 4.8 years. This compares favourably with the ANZ Kingfisher deal that priced last Friday at a reported WAMOT of 33.1 basis points over a shorter weighted average life of 3.2 years.
Banksia Trust Series 2001-1 comprises a soft bullet 'A1' A$216m fixed rate tranche maturing 15 March 2004 and were marketed at 28 to 31 basis points over 3 year swaps, and a A$174m of quarterly pay 'A2' floating rate notes with an expected life of 6.5 years that were marketed at 39 to 41 basis points over BBSW.
Standard & Poor's rates both tranches AAA. There is also a subordinated class 'B' tranche rated AA- and sized at A$10m, equivalent to 2.5% of the issue. This structure has been used effectively on a number of deals arranged by Deutsche Bank, including PUMA and RAMS.
Rob Hunt, Managing Director of Bendigo Bank, said that the result was further evidence of the importance that securitisation will play in the future capital management and cost-effective funding for Bendigo Bank.
"This is an excellent result for our team and our external advisors, as it has provided funding to a regional bank at the same pricing the majors are achieving. This outcome has enabled Bendigo Bank to compete on an equal footing with larger financial institutions whilst retaining our focus on providing quality service to our Customers and their communities."