Liberty prices A$1.75 billion RMBS issue and 100th capital markets transaction

18/9/2025

Liberty Financial Pty Ltd (Liberty) has priced a $1.75 billion Liberty Series 2025-2 RMBS issue, its 85th term securitisation and 100th capital markets transaction. The Liberty Series 2025-2 Trust is Liberty’s 55th 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$1 billion to A$1.75 billion. National Australia Bank is the sole Arranger and a Joint Lead Manager along with BofA Securities, Commonwealth Bank of Australia, Deutsche Bank, SMBC Bank International plc and Westpac Banking Corporation. The transaction comprises A$1.75 billion of notes rated by Moody’s Investors Service (Moody’s) and Fitch Ratings (AAA notes only).

  • The A$437.5 million Class A1a notes to be rated Aaa(sf)/AAAsf with a weighted average life of about 0.3 years, priced at a margin of 70 basis points over one-month BBSW.

  • The A$900.0 million Class A1b notes to be rated Aaa(sf)/AAAsf with a weighted average life of about 2.1 years, priced at a margin of 100 basis points over one-month BBSW.

  • The JPY14.7 billion Class A1c notes to be rated Aaa(sf)/AAAsf with a weighted average life of about 4.1 years, priced at a margin of 50 basis points over one-month JPY TONA.

  • The A$185.5 million Class A2 notes to be rated Aaa(sf)/AAAsf with a weighted average life of about 3.3 years, priced at a margin of 115 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), Baa2(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 60.7% and is seasoned at 24.8 months. The Liberty Series 2025-2 transaction will settle on 25 September 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 from our very first public term issuance in 2002 to this our 100th capital markets issue.”

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.