AFG prices new Prime RMBS transaction
Released
Released
Announcement PDF
Market Release
17 September 2026
AFG prices new Prime RMBS transaction
Strong domestic and international investor demand supports AFG’s latest issuance
Australian Finance Group Ltd (ASX: AFG) today announced that its subsidiary, AFG Securities Pty Ltd
(AFG Securities), has priced a A$1.2 billion Prime Residential Mortgage-Backed Securities (RMBS)
transaction. The transaction was supported by demand from domestic and international investors,
reflecting continued engagement with AFG’s RMBS program. AFG CEO David Bailey said the
transaction marked another important milestone for the company. “We are very pleased with the
response to this transaction and the breadth of engagement from investors in Australia and
international markets.
“This transaction further supports the strength and diversity of our funding program and provides an
important foundation for AFG Securities to continue delivering competitive home loan solutions for
AFG brokers and their customers.”
The transaction size matches AFG’s A$1.2 billion Prime RMBS issuance in February 2026, which was
the largest issuance in AFG’s history at that time. This is AFG’s 21st term transaction taking total
issuance to $13.1 billion. Importantly more than 50% of AFG Securities’ total outstanding funding is
sourced from long term RMBS issuance.
The transaction is expected to settle on 29th
September 2026. Details of the notes are as follows:
Class Issue Size A$(m)
Expected Ratings
Fitch/S&P
Initial Credit Support Interest Rate Expected WAL
A1S $384,000,000.000 AAAsf/AAAsf 10.00% BBSW + 73 bps 0.4yrs
A1L $696,000,000.000 AAAsf/AAAsf 10.00% BBSW + 103 bps 2.9yrs
A2 $60,590,000.000 AAAsf/AAAsf 4.95% BBSW + 120 bps 3.8yrs
B $26,530,000.000 AAsf/NR 2.74% BBSW + 140 bps 3.8yrs
C $18,600,000.000 Asf/NR 1.19% BBSW + 160 bps 3.8yrs
D $5,280,000.000 BBBsf/NR 0.75% BBSW + 175 bps 3.8yrs
E $4,560,000.000 BBsf/NR 0.37% BBSW + 290 bps 3.8yrs
F $1,320,000.000 Bsf/NR 0.26% BBSW + 405 bps 3.8yrs
G $3,120,000.000 NR/NR 0.00% ND 5.0yrs
The release of this announcement was authorised by AFG Company Secretary, Michelle Palethorpe.
Share your feedback
Discover