ColCap Financial Group (“ColCap”) has priced an innovative RMBS incorporating a A$330 million social tranche supported by loans to investors secured over National Disability Insurance Scheme (NDIS) housing. This is the first securitisation of NDIS housing loans in Australia.
In a significant step towards social financing in Australia, ColCap Financial Group, a leading non-bank prime lender specialising in residential mortgage lending, has priced its first ever social bond as part of its latest residential mortgage-backed security (“RMBS”) issue. The issue, named Triton 2025-2, is expected to settle on 2 July 2025. Natixis CIB acted as Sole Arranger and Sustainability Coordinator for the transaction.
The watershed A$330 million social tranche, part of an RMBS issuance totalling A$1.2 billion, is dedicated financing for Specialist Disability Accommodation (SDA), which will generate a positive social impact. The social tranche is comprised of SDA residential properties, designed to support NDIS participants with permanent and significant disability to improve their quality of life, independence and community participation.
The issue marks the first time NDIS loans have been securitised in an RMBS transaction and represents one of the first transactions in Australia backed by true social housing.
ColCap recently introduced a comprehensive Sustainability Finance Framework to bolster its commitment to environmental, social, and governance (“ESG”) principles. This framework not only surpasses the company’s previous Green Bond Framework but also aligns with the International Capital Markets Association’s (ICMA’s) Green Bond Principles 2021, Social Bond Principles 2023, and Sustainability Bond Principles 2021. The Framework received a Second Party Opinion from Sustainalytics, affirming it is credible, impactful and aligned with the ICMA’s Principles. This transaction has been over two years in the making, with ColCap working closely with Natixis CIB which has provided warehouse financing for collateral in both the construction phase (as the houses were built or converted into NDIS appropriate properties) and in the completed phase. Natixis CIB and ColCap collaborated with ratings agencies S&P and Fitch to apply criteria to ensure the asset was rateable for securitisation purposes. Natixis CIB and ColCap also worked closely with strategic Japanese investor Norinchukin, with whom the full A1-AU-S Sustainability Notes were privately placed, along with the A1-AU Notes.
CEO Andrew Chepul stated: “We have innovated to meet the community’s growing demand for specialist disability housing solutions that not only boost housing supply but also lead to positive social impacts, where communities have access to fit for purpose disability housing to improve outcomes for communities across Australia.”
David Carroll, ColCap Treasurer, said: “The overwhelming response to our $1.2 billion RMBS issuance with a social tranche of $330 million illustrates the demand for social finance from investors and their confidence in the quality of the assets underpinning our Triton RMBS program. We are proud of our successful history in the Australian Residential Mortgage-Backed Securities (RMBS) market and are pleased to meet the needs of our investors, customers, and intermediary partners, along with supporting the provision of specialist disability housing.”
Oscar Austin, Co-Head of Alternative Credit and Securitized Product Group, Asia Pacific, Natixis CIB, stated: “The successful and smooth execution of this innovative transaction, during a time of geopolitical uncertainty, is a credit to both ColCap and the robust nature of the Australian Securitisation Market.”
ColCap’s financial results for the fiscal year ending December 2024, established itself as one of the largest Australian non-bank lenders with a prime loan portfolio that currently exceeds $17 billion. ColCap’s strong financial performance for the 2024 fiscal year is highlighted by a net profit after tax of $62.2 million (a 22% increase), settlements totalling $5.9 billion (a 26% increase), and loan portfolio growth of 19% to $16.7 billion.
For further information, contact:
David Carroll (Treasurer)
Tel: +61 412 616 641
Email: [email protected]
www.colcap.com.au
