Structured finance and securitisation
Westpac’s Structured Finance team is the market leader1 in innovative financial structures and solutions.
- Warehousing facilities offered through Westpac and/or Waratah Receivables Corporation (“Waratah”)
- Arranging term Structured Asset Backed Bond issues in the Australian and New Zealand market
- Bespoke financing unique to client or industry circumstances, including off balance sheet funding structures
We provide a high level of support for the initial and ongoing success of our clients’ transactions. These include the provision of interest rate and cross currency swaps, deposits/Guaranteed Investment Contracts (GIC) facilities and liquidity/redraw facilities. We also maintain an active secondary market presence and strategically invest in Asset-Backed and Mortgage-Backed Securities (ABS & MBS).
Westpac finances a wide range of asset portfolios that meet a minimum level of credit quality regardless of whether they are funded on the Westpac balance sheet or Waratah. This allows us to deliver a high quality and cost effective asset financing capability for our client base.
Asset portfolios that have been financed by Westpac and Waratah include:
- Retail residential mortgage loans including reverse mortgages and presales
- Small ticket commercial mortgage loans
- Margin loans
- Trade receivables
- Factored receivables
- Business loans
- Consumer receivables
- Solar and energy efficiency lease assets
- Auto and equipment finance assets.
Waratah Receivables Corporation
We manage Australia’s largest Asset Backed Commercial Paper (ABCP) program known as Waratah Receivables Corporation.
Waratah issues US$ ABCP through Sydney Capital Corporation ("Sydney Capital") in the United States and A$ ABCP in Australia through Waratah Securities Australia Limited ("Waratah Securities").
The program is rated A1+(sf) by Standard and Poor’s and P1(sf) by Moody's Investors Service.
Social finance & social benefit bonds
Westpac is at the forefront of developing the social finance market in Australia in addition to conventional financing structures to support the development of social and affordable housing.
In 2013, Westpac developed the first bank arranged social benefit bond in Australia. The $10m Benevolent Society Social Benefit Bond draws on Westpac’s market leading1 expertise in structured finance. The monies raised are being used to support the establishment and operation of the “Resilient Families” program that seeks to reduce the incidence of out of home care in New South Wales.
Westpac is open to assisting interested organisations develop their own program that supports their social and community ambitions.