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Basecorp secures more funding to increase its lending

Basecorp is the first non-bank issuer to complete two securitisations in a calendar year since the GFC.

Tuesday, December 14th 2021, 6:00AM

Basecorp Finance has completed a successful issuance of an RMBS deal, its second capital markets RMBS transaction of 2021.

Issuance size was $250 million and notes were rated AAA to BBB across six note classes by Fitch, with the transaction arranged and lead managed by Westpac New Zealand.

Funding, like the inaugural deal, will be used to support Basecorp’s existing warehouse facilities as the company targets continued growth.

The transaction sees Basecorp as the first non-bank issuer to come to market twice in a calendar year since the GFC, and likely concludes a record year for non-bank issuance in New Zealand with more than $2 billion issued. 

This issuance is off the back of significantly elevated non-bank system mortgage growth, with annualised levels above 30% p.a. and total outstanding mortgages growing from $3.5 billion in October 2020 to $4.8billion in October 2021.

Basecorp chief financial officer John Moody said: “The team is incredibly proud to issue our second RMBS trade for 2021, and we thank all those who have assisted with the success of these two trades through the year. The A1 senior note tranche funding at +90bp will accommodate Basecorp maintaining competitive interest rates as further likely OCR increases occur through 2022, and we look forward to bringing a further issue to market next year as we establish an annual cycle.”

The adviser channel has been key to Basecorp’s growth, with a book size now over $800 million after significant growth through 2021. Floating interest rates are currently risk priced between 5.79% and 6.79%.

“We thank the mortgage adviser community for their support of the business and the role they have played in our success.

"We’re very focused on relationships with the channel, and are grateful not only for the support of advisers who have consistently dealt with us over many years, but also the number of new advisers who have contacted us over the last 12 months and established a new relationship with us.”

The deal continues to position Basecorp well to meet anticipated origination demand from the adviser channel in 2022.

Moody said: “The issuance concludes a strong 2021 for the business, which has benefitted from a number of tailwinds despite the backdrop of the various lockdowns. In particular, the various macro-prudential and regulatory changes, including the CCCFA changes most recently introduced in December, have led to increasing business flowing from the banking sector to non-bank participants."

"We expect this growth to continue in 2022, and this funding leaves us well positioned to continued to be able to service strong anticipated demand from the adviser channel.”

Tags: Basecorp

« Non-bank sector says CCCFA will harm lockdown recoveryPetition launched against CCCFA »

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Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 ▼5.65 ▼5.55 ▼5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 ▼6.39 ▼6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - ▼6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 ▼5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.79 6.49 6.49
TSB Special 7.89 5.99 5.69 5.69
Unity ▼7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.50 ▼6.19 ▼5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.17 5.79 5.69

Last updated: 30 October 2024 9:36am

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