Members Equity Bank announces $1 billion mortgage-backed securitisation issue

28 April 2006

Macquarie Debt Markets, a division of Macquarie Bank's Treasury and Commodities Group, today announced that Members Equity Bank's SMHL programme is launching an AUD1 billion residential mortgage-backed securitisation issue, called SMHL Securitisation Fund 2006-1.

This issue - the sixteenth AUD denominated series from the highly regarded SMHL programme - is the first issue out of the programme for 2006.

The Trustee is Perpetual Limited and ME Portfolio Management Limited is the Trust Manager. Members Equity Bank is the mortgage servicer. Macquarie is the arranger of the transaction and Macquarie Bank and Deutsche Bank AG are joint lead managers and joint bookrunners. ABN Amro Bank N.V. and Westpac are co-managers.

It is expected that the Bonds will be rated by both Standard & Poor's and Moody's Investors Service.

The structure will be as follows:

 Class  Size AUD (M)  Interest Rate Option  Expected Rating (S&P / Moody's)  WAL (years)
 A  982   Floating    AAA / Aaa   2.85 
 B  18  Floating   AA / Aa2  5.90

The transaction is structured so that the level of subordination is sufficient to withstand a one category ratings downgrade of Genworth Financial Mortgage Insurance Pty Limited (as the majority mortgage Insurer) by Standard & Poor's and a two-notch ratings downgrade by Moody's.

As at 18 April 2006, the mortgage portfolio had the following characteristics:

 Total Portfolio Size:  $999,999,992.66
 Number of Loans:  7,647
 Average Loan Size:  $130,770.24
 Weighted Average Current LVR:  63%
 Average Seasoning:  18 months
 Percentage of low documentation loans in the pool:  0%

The issue is expected to be priced on or around 9 May 2006, followed by settlement on 16 May 2006.

For further information, please contact:

Kevin Lee
Division Director, Debt Markets
Macquarie Bank Limited
Tel: (612) 8232 8577
Mobile: (614) 0485 7206

Teresa Neal
Associate Director
Debt Finance
Tel: (612) 8232 3844

Contact us

Please email us for all media enquiries