Australian non-bank lender Columbus Capital has another unique securitisation deal in front of debt funds.
Less than one year after it ran the first securitisation of Australian mortgages held by offshore buyers, it is in the market with a $400 million securitisation of mortgages held inside local self managed superannuation funds.
Columbus Capital kicked off the deal on Monday morning after a fortnight marketing to potential investors. It tapped National Australia Bank as arranger and Credit Suisse, NAB, Natixis, Standard Chartered and Westpac as lead managers.
The $400 million deal for Columbus' Triton SMSF Bond Trust 2020 Series 1 was split into 10 tranches. The bulk of the offer was in the top four tranches, which were each given AAA preliminary ratings by Standard & Poor's.
The top tranche was also the biggest, at $220 million. Price guidance was 160 to 165 basis points above the one month bank bill swap rate.
Potential buyers were told there was strong indicative interest from debt funds, life insurance companies and other institutions across Asia Pacific and in Europe. The deal was upsized from an initial announcement of $250 million.
Australia's big four banks, who typically lead buyer demand in such deals, were not expected to take part in the transaction.
The deal was expected to price on Wednesday.
Columbus Capital is one of the biggest writers of mortgages held inside SMSFs, along with rivals including Blackstone-backed La Trobe and Liberty Financial.
It was Columbus Capital's third RMBS deal this year. The others, worth $1 billion and $600 million, priced in March and June, respectively.
The Australian Office of Financial Management, the Australian government's debt agency that has committed to support non-bank financiers and their RMBS deals, was not been required to participate in either deal.