ColCap, a leading non-bank prime lender specialising in residential mortgage lending, today announced the pricing of its latest prime residential mortgage-backed security (“RMBS”), known as Triton 2025-1, which priced on 6 March 2025 and settles on 13 March 2025.
With a substantial issuance of $1.4 billion, the senior tranche was priced at an attractive 100 basis points above Bank Bill Swap Rate (BBSW) levels. The issue was the lowest price by an Australian non-bank in over 3 years for a tranche of the equivalent duration.
The transaction attracted robust demand from both local and international investors, closing significantly oversubscribed. This strong interest underscores growing investor confidence in ColCap’s high-quality asset portfolio and its impressive 19-year history in the financial sector.
The transaction is noteworthy in that:
- Pricing for Australian prime RMBS has tightened considerably and is back to early 2022 levels ColCap priced its senior 3 year note at 100 basis points.
- Coverage ratios were very strong, and we have seen record bidding across all tranches within the transaction allowing the transaction to upsize from its launch level of $750 million.
- Investors were well diversified with strong international interest seeing offshore participation at 64%. Institutional funds accounted for approximately 65% of the book with several large international investors participating in the Triton program for the first time.
Andrew Chepul, CEO of ColCap, said “We are delighted by the strong and ongoing demand for our Triton RMBS. This reinforces ColCap’s position as a leading non-bank prime lender and highlights our commitment to delivering quality lending solutions. ColCap continues to perform strongly as evident by our results for the financial year ended December 2024 in which we achieved $62.2m net profit after tax (+22%), $5.9bn in settlements (+25%), and closed the year with a $16.7bn loan portfolio (+19%).”
David Carroll, Treasurer of ColCap, echoed this sentiment: “The overwhelming response to our RMBS issuance further illustrates that investors have unwavering confidence in the quality of the assets underpinning our Triton RMBS program. Our proven track record in the Australian RMBS market speaks for itself.”
About ColCap
ColCap is a Sydney-headquartered, privately owned leading non-bank lender specialising in residential mortgage loans. ColCap was founded in 2006 and currently has a loan portfolio, which will shortly exceed A$17 billion.
ColCap operates in Australia and the UK primarily under the following brands:
- Origin Mortgage Management Services, the wholesale lending brand in Australia, which services mortgage managers offering white labelled mortgage loans.
- Granite Home Loans, the broker lending brand in Australia, which offers selected loan products to borrowers utilising aggregators and mortgage brokers.
- Homestar Finance, the award-winning retail lending brand in Australia, which offers mortgage loans direct to borrowers.
- Molo in relation to all UK mortgage loans.
ColCap offers an extensive range of owner occupied and investment home loan products, featuring both fixed and variable rates. Their offerings include specialised solutions such as SMSF loans, construction loans, Sharia-compliant finance, non-resident loans, commercial property financing, and bridging loans, all designed to provide borrowers with maximum flexibility and tailored options to suit their unique needs.
For further information about ColCap, please visit www.colcap.com.au.
For further information
David Carroll (Treasurer)
Tel: +61 2 9273 8132
Email: [email protected]
www.colcap.com.au
