Macquarie prices $A300 million PUMA Masterfund S-6 RMBS transaction

06 June 2008

Macquarie Securitisation Limited, the manager of the PUMA residential mortgage backed securitisation program, today announced that it has priced the $A300 million PUMA Masterfund S-6 bond issue. The issue size was increased from the original $A250 million offered to investors.

The Class A senior notes, to be rated AAA by Standard & Poor’s Ratings Group and AAA by Fitch Ratings , with a face value of $A270 million and a weighted average life of approximately 2.3 years, were priced at a margin of 1.80 per cent (180 basis points) over 1-month BBSW. The $A30 million Class B subordinated notes, representing 10.0 per cent subordination are not rated. Commonwealth Bank of Australia, Deutsche Bank and Macquarie Bank and Royal Bank of Scotland plc were the joint lead managers and book runners for the issue. The issue will settle on 17 June, 2008.

Banking and Financial Services Group Head, Mr Peter Maher said: "We are pleased with the outcome of this transaction. This PUMA bond issue is the first prime RMBS to be issued in 2008 consisting entirely of stated income and stated serviceability loans. We received strong support from investors who recognise the strong underlying collateral and performance of PUMA bonds and saw the transaction as good value presented by disruptions in global financial markets. A total of 6 investors participated in the issue."

Mr Maher added: "The PUMA S-6 bond issue is collateralised by a pool of mortgage loans with a weighted average current loan-to-value ratio of 57 per cent and a weighted average seasoning of 23 months. The pool consists entirely of stated income and stated serviceability loans made to prime borrowers who are self-employed. All of our loans have the benefit of mortgage insurance covering 100 per cent of principal and interest on the loans, provided by either Genworth Financial Mortgage Insurance or PMI Mortgage Insurance."

About Macquarie Securitisation Limited
As manager of the PUMA Programme, Macquarie Securitisation Limited is a leading Australian issuer of residential mortgage-backed securities. It has raised a total of $A37.5 billion in 40 separate issues since 1993, involving 29 public issues in Australia, five public issues in the European markets and six global issues. PUMA Masterfund S-6 represents the third public RMBS transaction for Macquarie Securitisation since the onset of the disruptions in the global capital markets. The Class A margin for PUMA Masterfund S-6 of 180 basis points compares to a Class A margin of 58 basis points for the PUMA Masterfund S-5 transaction which was completed in November 2007, emphasising the extent of the difficult global market conditions in recent months.

Contacts:

Stephen Yan
Corporate Communications
Macquarie Group
Tel: (612) 8232 2788