Liberty prices A$1.0 billion SME issue

31/10/2025

Liberty Financial Pty Ltd (Liberty) has priced the Liberty Series 2025-1 SME transaction, its 86th term securitisation. The Liberty Series 2025-1 SME Trust is Liberty’s fourteenth issue of securities backed by a portfolio of its innovative small-to-medium enterprises (SME) loans bringing Liberty’s total SME securitisations to A$7.8 billion.

Given strong investor demand across all offered tranches, the transaction was upsized from a launch volume of A$600 million to a final issue size of A$1.0 billion. Westpac Banking Corporation is the sole Arranger. Westpac is also a Joint Lead Manager along with Commonwealth Bank of Australia, Deutsche Bank and National Australia Bank. The transaction comprises A$1.0b billion of notes rated by Moody’s Investors Service (Moody’s).

  • The A$650 million Class A1 notes to be rated Aaa(sf) with a weighted average life of about 2.6 years, priced at a margin of 100 basis points over one-month BBSW.

  • The A$150 million Class A2 notes to be rated Aaa(sf) with a weighted average life of about 2.6 years, priced at a margin of 110 basis points over one-month BBSW.

  • The A$39 million Class A3 notes to be rated Aaa(sf) with a weighted average life of about 3.6 years, priced at a margin of 120 basis points over one-month BBSW.

The pricing of the Class B, C, D, E and F notes to be rated Aa2(sf), A2(sf), Baa2(sf), Ba2(sf) and B1(sf) is not disclosed.

The issue consists of a pool of SME mortgages with a weighted average loan-to-value ratio of 61% and is seasoned at 29 months. The Liberty Series 2025-1 SME transaction will settle on 10 November 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.