Liberty prices A$1.5 billion RMBS issue

19/3/2025

Liberty Financial Pty Ltd (Liberty) has priced a $1.5 billion Liberty Series 2025-1 RMBS issue, its eighty-fourth term securitisation. The Liberty Series 2025-1 Trust is Liberty’s fifty-fourth issue of securities backed by a portfolio of residential mortgages.

Given strong investor demand across all offered tranches, the transaction was upsized from a launch volume of A$750 million to A$1.5 billion. Deutsche Bank is the sole Arranger and a Joint Lead Manager along with BofA Securities, Commonwealth Bank of Australia, National Australia Bank, SMBC Bank International plc and Westpac Banking Corporation. The transaction comprises A$1.5 billion of notes rated by Moody’s Investors Service (Moody’s) and Fitch Ratings (AAA notes only).

  • The A$522 million Class A1a notes to be rated Aaa(sf)/AAAsf with a weighted average life of about 0.4 years, priced at a margin of 75 basis points over one-month BBSW.

  • The A$708 million Class A1b notes to be rated Aaa(sf)/AAAsf with a weighted average life of about 2.5 years, priced at a margin of 110 basis points over one-month BBSW.

  • The A$195 million Class A2 notes to be rated Aaa(sf)/AAAsf with a weighted average life of about 3.4 years, priced at a margin of 130 basis points over one-month BBSW.

The pricing of the Class B, C, D, E and F notes expected to be rated Aa2(sf), A2(sf), Baa1(sf), Ba2(sf) and B2(sf) is not disclosed.  

The issue consists of a pool of residential mortgages with a weighted average loan-to-value ratio of 62% and is seasoned at 17 months. The Liberty Series 2025-1 transaction will settle on 25 March 2025. 

Peter Riedel, Chief Financial Officer at Liberty, said: “Liberty is a leader in providing households and small businesses with the freedom to choose from a wide range of products and services to meet their financial needs. We are grateful for the support investors have extended to our business.”  

Liberty has a rating of “STRONG” from Standard & Poor’s for the servicing of commercial mortgages as well as prime and non-prime residential mortgages and auto loans. Liberty is also Australia’s only investment-grade rated non-bank issuer (BBB, outlook stable by S&P) and one of only a few lenders with an unblemished capital markets record with no ratings downgrades or charge-offs ever experienced by its securitisation program