AFG 2018-1 Trust: 02 July 2018

AFG is a diversified lending services company and one of the country’s largest mortgage broking groups. Through a network of 2,875 contracted mortgage brokers, AFG processes around $4.5 billion of finance every month and has a combined residential and commercial loan book of $133 billion.

The Trust will issue limited recourse, amortising, pass-through floating rate Notes secured by prime first ranking Australian residential mortgages. The Notes will be divided into nine tranches: Class A1, Class A2, Class A3, Class AB, Class B, Class C, Class D, Class E and Class F Notes. The underlaying assets are a pool of first-ranking mortgages secured over residential property in Australia. The transaction will not feature a substitution period, nor will the bonds be listed.

The pool consists of 1,010 variable-rate consolidated loans (1,352 unconsolidated), where the average consolidated balance is A$346,532 and the maximum is A$995,185. Occupancy type: owner-occupied – 61.19%, investment – 38.81%. Insurance provider: Uninsured – 53.61%, Genworth – 35.41% and QBE – 10.98%. The WA current LVR is 66.04% and the WA seasoning is 27.45 years. Regional concentration: Victoria – 26.09%, NSW – 25.43%, WA – 17.81% and Queensland – 15.96%.

EU Risk Retention: Neither AFGS nor any other party to the Transaction Documents undertakes to retain, either on an ongoing basis or for any period, any net economic interest in this securitisation transaction for the purposes of the Existing EU Retention Rules or the New EU Retention Rules.