Heartland secures significant new funding

NZX/ASX Release

Heartland secures significant new funding for continued growth of its Australian reverse
mortgage business

15 September 2020

Heartland Group Holdings Limited (NZX/ASX:HGH) (Heartland), through its Australian subsidiary, is
very pleased to announce the completion of an innovative, long-term A$142 million Australian reverse
mortgage backed syndicated loan securitisation transaction funded by offshore institutional investors.

The first-of-its-kind transaction provides Heartland funding with a 30-year final maturity and increases
its access to committed Australian reverse mortgage loan funding to A$1 billion in aggregate to
support the continued strong growth and increasing demand for its product. The transaction achieves
another milestone in executing Heartland’s strategy to diversify type, source and tenor of its
Australian funding and importantly evidences market liquidity to existing warehouse funders.

The financing structure matches Heartland’s reverse mortgage assets with the Solvency II
1

requirements of European insurers and provides Heartland access to deep pools of efficient, long-
dated funding that is typically unavailable to most Australian non-bank financial institutions.
Heartland’s high-quality reverse mortgage asset portfolio has enabled the structure to achieve
leverage
2
of 98%.

Macquarie Bank’s Structured Lending team arranged the transaction which was supported by several
offshore institutions including pension fund and insurance investors. M&G Investment Management
Limited played an important role as cornerstone investor.

Australian retirees are estimated to own around A$1.5 trillion
3
in home equity – by far their largest
pool of wealth in retirement. Accessing a global base of offshore investors will assist Heartland to
continue to enable thousands of Australian retirees to unlock this wealth while continuing to live in
their own home.

Heartland is Australia’s leading reverse mortgage provider with a market share of approximately 26%.
4

Its award-winning product has now helped over 20,000 Australians live a more comfortable
retirement.

- Ends -


1
“Solvency II” is the regulatory capital regime governing European life insurers.
2
Being total senior debt divided by total reverse mortgages funded.
3
Based on Australian Bureau of Statistics households owned by those aged 65 and older, and the median sale price for Australian
residential properties.
4
Based on APRA ADI Property Exposure combined with Heartland Seniors Finance data as at 31 March 2020.

For further information, please contact the person(s) who authorised this announcement:

Jeff Greenslade
Chief Executive Officer
M: 027 382 0023
E: Jeff.Greenslade@heartland.co.nz
Andrew Dixson
Chief Financial Officer
M: 021 263 2666
E: Andrew.Dixson@heartland.co.nz

Address:
Level 3, Heartland House
35 Teed Street
Newmarket, Auckland
New Zealand