Basecorp eyes expansion with $250 million funding

Basecorp has raised a bond backed by previously-written mortgages, which will free up firepower for new lending in the mortgage space.

The transaction is the first issuance of its kind by Basecorp, as it capitalises on growing opportunities for non-bank lenders. 

The bonds were given AAA to A- ratings by the Fitch agency. 

After raising the fresh capital, Basecorp has slashed new long-term rates to 5.49% as it bids to offer an alternative to borrowers rejected by traditional banks. 

The company hopes its position as one of the few NZ-owned non-banks, and its strong relationship with adviser groups including Astute, NZFSG, Mortgage Link, Newpark and Q Group, will see it go from strength to strength. 

Basecorp's chief financial officer John Moody told TMM Online: "We've joined a number of aggregator panels over the past 12 months and we're looking to broaden our reach and work with new brokers."

He added: "We have a broad-based approach and work with [all borrowers from] first home buyers, to those with offshore income. It's a great time for non-banks and we're supportive of our sector.

"There are a number of great non-bank options for brokers, and we expect the market will grow over the next 3-5 years.

We think our market is well-positioned to do well, and we support initiatives with other non-banks to raise awareness and broaden education about non-bank options."