Firstmac Bond Series 3-2005 Trust $450 million mortgage backed securitisation issue launches today

29 November 2005

Macquarie Debt Markets announced today that the First Mortgage Group is launching a $450 million residential mortgage backed securitisation issue out of its FirstMac Mortgage Securitisation Programme. This is the sixth public issue out of the FirstMac Mortgage Securitisation Programme and the third public issue out of the programme this year.

Macquarie is arranger and joint lead manager of the transaction and HSBC Bank plc is the other joint lead manager.

Each of Standard & Poor's (S&P) and Moody's Investors Service (Moody's) will rate the Notes.

The issue will be backed by a portfolio comprising 99.9% "self certified" mortgages. Approximately 10% of the proceeds of the issue will be "pre-funding" and will be set aside to purchase additional mortgages during the 3 months following the issue date.

The structure is as follows:

Class Size $M Interest Rate Option Expected Rating (S&P/ Moody's) WAL (years)
A 395 Floating AAA/Aaa 2.88
AB 41.5 Floating AAA/Aa1 2.88
B 13.5 Floating AA/Aa2 5.65

The transaction has been designed as a "super senior" structure with a level of credit enhancement such that the rating of the Class A (super senior) notes is not reliant on lenders mortgage insurance. The level of subordination provided by the Class AB and Class B Notes is 12.22% of the total issue size. S&P's requirement for subordination before taking into account mortgage insurance is 12.2% and Moody's requirement is 10.75%.

Teresa Neal, Associate Director of Macquarie Bank Debt Markets said "We are pleased to be leading the sixth public term issue from the Firstmac Mortgage Securitisation Programme. This is FirstMac's second "self certified" loan issue for 2005. As with the 1-2005 transaction earlier this year, we have designed the transaction as a "super senior" structure, with the Class AB Notes providing an extra level of protection to the Class A Notes. Investors should find the strong level of subordination for the Class A notes and the extra yield that will be earned on the Class AB Notes (expected to be rated AAA by S&P) particularly attractive. We therefore expect the issue to be well received.".

The issue is expected to price on or around 6 December 2005 and will settle on 12 December 2005.

For further information, please contact:

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

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