MA Money completes $500m inaugural RMBS issuance

The news: MA Financial's residential mortgage lending business, MA Money, has completed its first Residential Mortgage-Backed Securities (RMBS) public term issuance, amounting to $500 million.

The numbers: The transaction, which had an initial launch size of $400 million, was increased due to strong domestic and offshore investor demand, MA Financial said in a statement. It represents the largest inaugural non-bank RMBS issuance by a first-time issuer in Australian history.

The context: The global asset manager, which specialises in private credit, real estate and hospitality, attracted strong inflows in the second half of 2023, reaching $9.2 billion in assets under management. Today MA Financial also announced that Redcape Hotel Group — managed and operated by its hospitality arm MA Hotel Management — has exchanged contracts for the sale of the Eastern Creek Tavern and Mount Annan Hotel in Western Sydney for more than $70 million.

What they said: MA Financial Group's Joint CEO Chris Wyke said: "We’re delighted with the result. It’s a meaningful milestone that underscores our prudent lending practices, and our desire and capacity to grow MA Money. Our plan is to be a regular RMBS issuer in the term market and expand our investor base.”