16 February 2010,


BANK of Queensland Limited (BOQ) has raised $350 million more than expected for a residential housing trust, with strong participation from the Australian Office of Financial Management (AOFM).

A statement today said the Series 2010-1 REDS Trust RMBS had aimed for a transaction of $500 million but was upsized to $850 million.

BOQ managing director David Liddy (pictured), says the bank is pleased to see a wide group of 20 investors taking part in the first REDS transaction of the year, which is a strong endorsement of its franchise and solid collateral.

“The bank has been active in government-guaranteed term debt markets with the strategic goal of increasing our term debt maturity profile,” says Liddy.

“This deal shows a return to more traditional sources of funding for regional banks, as markets improve.”

AOFM contributed around 30 per cent of the $850 million and the deal was arranged by Deutsche Bank, with Royal Bank of Scotland and Westpac participating as joint lead managers as well.

Liddy this week criticised the Federal Government’s decision to remove the wholesale funding guarantee, warning it could result in a battle for deposits.






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