Commonwealth Bank securitises A$15.6 billion of home loans
PRESS RELEASE LOCAL -- Fri 9 May 2008 09:58:28
Bangkok--9 May--Asian Banker
Commonwealth Bank Group has created a portfolio of A$15.6 billion of residential mortgage-backed securities (RMBS) through its Medallion Trust. These RMBS will be held by the Group and if required, the Class A notes can be used for repurchase agreements with the Reserve Bank of Australia (RBA) to generate up to an additional $12.25 billion of liquidity for the Group.
The deal consists of three tranches.
Class A of AUD A$ 14,974,000,000
Class B of AUD A$ 103,000,000
Class C of AUD A$ 577,600,000
The Class A notes are expected to be rated AAA by Fitch. The Class B notes are expected to be rated AA by Fitch, the Class C notes are unrated.
Transaction Details
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 Group will also provide a A$250 m liquidity facility and act as the interest rate hedge provider.
The trustee of Medallion Trust Series 2008-1R is BNY Trust Company of Australia Limited.
Structural enhancements include mortgage insurance policies for loans above 80% LVR with Genworth Financial Mortgage Insurance Pty Ltd.
The notes are sequential pay. Principal repayments will be allocated to Class A first until fully paid then Class B until fully paid, followed by Class C notes.
The structure has a 10 year substitution period which allows the Bank to add more home loans to the trust.
-- www.theasianbanker.com (May 9 2008)--