Firstmac has announced a groundbreaking new deal that will be the first of its kind to enter the Australian market: a green RMBS. The deal is valued at $ 750 million and will result in discounted green home loans of $ 230 million.
Working with an international group that includes Japanese bank Norinchukin, the non-bank lender will provide borrowers with loans of up to $ 1.5 million.
Norinchuckin has invested $ 637.5 million, with Australian government-backed Clean Energy Finance Corporation (CEFC) investing $ 108.5 million, and all homes participating in the program will earn the Nationwide House Energy Rating score Meet the scheme of 7 stars or more.
“This is our 42nd year in business and we’ve always made leaps forward so becoming a sustainable company has been a goal for some time,” said Kim Cannon, Managing Director of Firstmac.
“A few years ago we started green auto loans with a financing facility from the CEFC, and recently we started looking at green home loans.”
“Every time you get a building permit from the council, you get an environmental rating, with a minimum of 5, and when we look back on the last one, the average was six and a half. To be green compliant, it must be 7 or higher. It’s not just solar, but also windows and airflow and the like. “
“We tested and talked to a product with brokers and companies we deal with and were quite shocked at how aware the public is of green requirements.”
“One of our brokers gives a lot of investment loans and spoke to a construction company: On a green loan, a construction company has an add-on package of $ 2,000 to upgrade the house to get a 7 rating so people can save a lot Money for the future mortgage. “
“As Firstmac we are always issuing bonds in the market and we have had a relationship with the Japanese investor for a number of years and they have been very supportive of us and our growth. When we started talking about a green home loan, they were immediately there because they want to build this initiative around the world. “
“All of a sudden we have a product that we can bring to market that we can promote through the broker network, and we have the funding for it with the people of CEFC and the Japanese bank. Everyone wins and the environment wins. “