Basecorp secures more funding

Non-bank lender Basecorp has finalised its biggest funding raise to date.

The Hamilton-based company has raised $300 million through its securitisation programme.

This is its third capital markets RMBS transaction to date and brings the total raised through this programme to $800 million.

"The transaction positions Basecorp strongly for continued growth through 2022 despite a slowing property market, as non-bank system growth continues to remain elevated and significantly above bank system growth," Basecorp chief financial officer John Moody says.

“The team is proud of this transaction, concluded during a backdrop of rising economic and geopolitical concerns, and we are very grateful for the continued support of Basecorp’s funding programme by investors.

"Basecorp’s focus is on consistency, relationships, and price competitiveness, and the new funding coupled with the competitive note pricing received across all tranches will allow us to offer a compelling proposition to advisers over the remainder of 2022.”

Moody says the adviser channel has been a key part of Basecorp’s growth, with a book size now above $1billion following significant momentum in the last few years. Floating interest rates are currently risk priced from 6.95% post the most recent Reserve Bank OCR increase.

“The support from the adviser channel has been really pleasing, they are an integral part of our success, and we are delighted to secure this funding to continue to support the channel”, Moody said.

The issuance was $300 million and notes were rated AAA to BBB across six note classes by Fitch, with the transaction arranged by Westpac and lead managed by Westpac and BNZ. 

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