National Australia Bank Ltd (NAB) said it had acquired about $1 billion of mortgages originated by RHG at net asset value.
RHG owns the closed mortgage book of the former RAMS Home Loans Group Ltd. RAMS sold its brand and distribution business and all the business it wrote from November 15 to Westpac Banking Corporation Ltd last year for $140 million.
"Further to the RHG Ltd announcement today and as advised to the market on November 21, National Australia Bank today confirmed it had acquired approximately $1 billion of mortgages originated by RHG Ltd at net asset value,'' NAB said.
RHG announced earlier today is had successfully refinanced $5.5 billion in short-term debt.
RHG said one of two US extendable commercial paper (XCP) facilities had now been fully repaid.
The remaining XCP facility is intended to be repaid in full during New York business hours today, RHG said.
At 10.46am, RHG shares were four cents, or 17.39 per cent, higher at 27 cents. NAB was 74 cents stronger at $33.55.
The two XCP facilities needed to be refunded by a February 11 deadline.
To fund them, RHG said it used, or expects to use, funds from warehouse facilities with an aggregate commitment of $3.5 billion; a $750 million issue of residential mortgage-backed securities and the $1 billion reaped from the sale of mortgages to NAB.
Following the repayment of both XCP programs, RHG will have two warehouse facilities worth $1.9 billion and $725 million due to mature in May.
Another $970 million will mature in June and another $1.5 billion will mature in October.
Two more facilities worth $2 billion and $1.5 billion will mature in December.
Westpac last year promised to provide RHG with $1.5 billion in funding if it could form a syndicate of lenders.
NAB said the residential mortgages it bought were prime, seasoned Australian mortgages, which were all mortgage insured.
CNP Price at posting:
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