KWM is very pleased to have acted for Household Capital (HHC) as drafting counsel for HHC’s inaugural reverse mortgage term securitisation. The rated transaction raised $263m to fund HHC’s continued growth, releasing a premium to par, and enabling HHC to assist retired Australian homeowners by providing home equity funding. The transaction represents a milestone for HHC and the Australian securitisation market more broadly, bringing a new asset class to investors and providing longer-term scalable, sustainable funding for HHC.
The transaction included a number of innovative features to deliver the underlying risk, cashflow and security of Australian variable rate reverse mortgages to local and global institutional investors, and to allow HHC ongoing flexibility in providing tailored solutions for its customers.
The KWM team was led by Anne-Marie Neagle, supported by Matt Kaminsky and Jenny Guo, continuing KWM’s longstanding relationship with HHC on its innovative wholesale funding programme.
Commenting on the transaction, Anne-Marie Neagle said “We are thrilled to have supported HHC on this groundbreaking transaction. HHC's successful generation of investor interest in funding Australian equity release assets creates a platform for the future development of this asset class, and helps to fill a gap in Australian retirement funding and housing.”
