AUSTRALIAN FINANCE GROUP LTD — Capital/Financing Update 2021

May 5, 2021

6 May 2021

Market Release

AFG successfully completes upsized RMBS transaction

Australian Finance Group Ltd (ASX: AFG) wholly-owned subsidiary AFG Securities Pty Ltd has successfully priced an upsized A$750m Residential Mortgage Backed Securities (RMBS) issue.

The AFG 2021-1 Trust $750 million issue of Australian prime residential mortgages is AFG Securities’ 11th issue since 2013, taking the total paper issued to the market by AFG Securities to A$4.825 billion.

The transaction priced yesterday, 5 May 2021 and is due to settle next Wednesday, 12 May 2021.

AFG Chief Executive Officer David Bailey welcomed the support received for the transaction from both domestic and international investors. “We are very pleased to be able to upsize the transaction from $500 million to $750 million with the support of new and returning investors.”

“AFG Securities mortgages continue to perform well, and the broker proposition in the Australian home lending market has never been stronger.

“AFG Securities residential home loan products have both depth and breadth, and the market has responded. Our conservative underwriting standards and consistent management of the portfolio means our loans track well below the Standard & Poor’s Performance Index (SPIN).

“We are very pleased with the upsizing of this transaction and look forward to continuing to deliver a competitive range of home loans to our brokers and their customers and sound investment opportunities to the RMBS market,” he concluded.

Details of the notes are as follows:

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NAB and ANZ acted as Joint-lead Managers on the transaction.

The release of this announcement was authorised by AFG’s Company Secretary, Lisa Bevan.

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