ING Australia has raised $800 million in a sale of its residential mortgage-backed securities (RMBS) to the wholesale money market.
Australian taxpayers purchased $200 million of ING’s mortgage securities through the Federal Treasury’s Australian Office of Financial Management (AOFM).
The AOFM aims to create competition for the big four banks by supporting wholesale funding for smaller banks.
“Investor support for the transaction was very encouraging in terms of both breadth and depth. Especially pleasing was the return of previous investors to this asset class, together with a range of new investors,” ING treasurer Michael Witts says.
ING is the biggest home lender in Australia after the ‘big four’ banks, and is owed $38 billion in mortgage payments.
International Netherlands Group (ING) is a Dutch bank based in Amsterdam. ING Australia is a wholly-owned subsidiary of the International Netherlands Group.