Real Asset Management (RAM) has closed the book build for its RAM Secured Income Notes (ASX: RAMHA) almost a week ahead of schedule, with cornerstone and broker firm demand exceeding the $300 million target. RAMHA is scheduled to list on the ASX on 15 October 2025.
The Notes offer direct access to Australian mortgage credit exposure, which is typically only available to institutional investors. They are senior, secured, and structured to deliver regular monthly income with certainty to investors via the Note terms of issue and quality of the underlying portfolio. The Notes will pay monthly interest of 3.00% p.a. over the 1-month BBSW, stepping up to 3.25% p.a. after 5.5 years until legal maturity at 6.5 years.
RAM Group CEO Scott Kelly said in a statement, “We’ve seen very strong demand from investors and brokers for the Notes, demonstrating appetite for a simple, lower risk product.
“Investors benefit from multiple layers of loss protection. The Notes feature a defined maturity date that minimises drawdown risk and creates a natural pull-to-par. They are also secured by an independent trustee holding security over all issuer assets.
“Another key point of difference is that we have engaged external credit risk specialists to rate the implied risk on our Notes on an ongoing basis, rather than marking our own homework.
“To ensure strong alignment with investors, RAM is contributing $10 million of subordinated first-loss capital within the Note structure, meaning we take losses before any investors are affected. Income to Noteholders is cumulative and RAM does not get paid income until investors have received all outstanding interest.
“Risk is further reduced through our conservative credit policies. Every loan is fully verified before approval, with first mortgage security taken over each property. The portfolio maintains a conservative average LVR below 65%, and we have no exposure to property development finance.”
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The underlying loans are originated by Brighten, RAM’s wholly-owned non-bank lender, which writes around $270 million of mortgages per month. Since 2017, Brighten has originated more than 10,000 loans and completed seven public RMBS transactions totalling $3.6 billion, with each called on the first call date.
Ord Minnett, Taylor Collison and Westpac Institutional Bank have acted as Joint Lead Arrangers with FIIG Securities, Shaw and Partners, and Real Asset Management as Joint Lead Managers.
