ING Australia to Sell Mortgage Backed Bonds

February 22
10:04 AM 2013

ING's Australia unit, ING Groep NV is projecting to sell up to Aus$2 billion or US$2.05 billion in bonds backed by home loans for 2013. This volume is its record high offering since the security was offered in the portfolio of the firm from 2010.

The cash would be raised through two offered bonds in the home mortgage market in Australia, whose net worth is Aus$1.1 trillion. ING Bank (Australia) Ltd would raise the cash through the bond offers. This is the manner in which the bank, Australia's fifth largest home mortgage company, is diversifying its portfolio, moving from deposits and funding to bond issues with given time periods. This is also one way for banks to protect themselves after the 2008 worldwide recession caused major issues in the wholesale term debt market.

Currently, ING Bank Australia has Aus$26 billion in deposits and previous mortgage backed bond issuances held in October 2010 raised Aus$4.25 billion for the Dutch financial firm. 

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