SA Home Loans raises over R5bn in 2012 via securitisation market


SA Home Loans, with Standard Bank Group acting as mandated lead arranger, has raised R1.4-billion through its latest Thekwini 10 issue.

SA Home Loans, the non-bank mortgage lender, has brought over R5-billion in issuance to the securitisation market during 2012, with the successful closing of their latest transaction.

This is the fourth issuance that SA Home Loans hasbrought to market in 2012 with Standard Bank acting as lead arranger for all four transactions. The first issuance was the Thekwini 9 transaction,which raised R1-billion in February, while Thekwini 10 that closed in June raised R1.8-billion.

This placement, being the single largest deal sizeplaced by SA Home Loans since the onset of the global financial crisis in late 2007, was a landmark for SA Home Loans and demonstrates the continued recovery of the local securitisation market. A further R800-million was raised in October through a private placement to refinance the previous Thekwini 7 deal.

SA Home Loans is regarded as a pioneer of residential mortgage backed securitisations (“RMBS’) in South Africa, being the first mortgage originator to tap the public residential mortgage backed securitisation market when it launched Thekwini 1 in November 2001. It remains the leading RMBS issuer in the South African market, with over R27 billion issued to date.

Kevin Penwarden, SA Home Loans’ Chief Executive Officer, says the success of the issuances has largely been a result of thequality and performance of the SA Home Loans mortgage portfolio.

“The market is in the early stages of recovery and to have raised as much as R5-billion is a clear indication of investor support for the quality and credit performance of the SA Home Loans portfolios. We are pleased with this performance and with the breadth and spread of investors indicating a vote of confidence in SA Home Loans. We have strong relationships with our investors and pride ourselves as being the front-runner of residential mortgage backed securitisations in South Africa,” says Mr Penwarden.

Megan McDonald, Head of Debt Primary Markets at Standard Bank Group, says SA Home Loans is regarded by investors as a leading mortgage originator and servicer in South Africa.

“To raise over R5-billion in this market in one year is a resounding success. The latest issuances bear the hallmarks of previous SA Home Loans transactions with a quality asset pool and stringent underwriting criteria and low loan-to-value ratios. It comes on the back of a strong performance track-record and innovation by SA Home Loans in their previous securitisation transactions,” says Ms McDonald.


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