RAM Income Capital Announces AUD 0.6004 Interest Payment for RAMHA Bonds Due 12 August 2026

Overview of RAM Income Capital’s Floating Rate Bond Structure

RAM Income Capital Ltd, an Australian financial services provider, issues secured income notes designed to deliver regular cash distributions to investors. The RAMHA security (officially titled BOND 1-BBSW+3.00% 10-04-32 MTH SECUR CUM RED STEP) is a monthly-paying secured income note maturing on 10 April 2032. This structure enables capital raising while offering investors exposure to floating rate income linked to the Australian bank bill swap rate (BBSW). The notes are governed by a Trust Deed, with calculation methods and terms detailed in the prospectus dated 15 September 2025.

The floating rate mechanism adjusts monthly interest payments based on market conditions. The fixed 3.00% margin remains constant throughout the note’s life, while the BBSW component varies. For the July 2026 payment period, the one-month BBSW was set at 4.305% on 13 July 2026, the first business day of the period, resulting in a total annualised rate of 7.305%. This transparent approach allows investors to anticipate payments based on published BBSW rates.

Interest Payment Calculation and Per-Security Amount for July 2026

The July 2026 interest payment is calculated at AUD 0.6004 per security, representing pro-rata interest for the 30-day period. This figure is derived from the annualised 7.305% rate in accordance with the Note Trust Deed, ensuring compliance with the prospectus. Investors holding RAMHA securities on the record date of 24 July 2026 are eligible for this payment.

The pro-rata calculation converts the annual rate to a monthly equivalent, with 7.305% per annum translating to 0.6004% over 30 days. This transparency enables bondholders to independently verify payments and understand how BBSW fluctuations impact monthly income. Payments are made in Australian dollars and are unfranked, consistent with financial services fixed-income securities.

Payment Schedule and Settlement Dates

RAM Income Capital has set the ex-date for 23 July 2026, requiring investors to hold RAMHA securities before this date to qualify for the upcoming distribution. The record date is 24 July 2026, which determines beneficial ownership for payment purposes. These dates align with standard Australian fixed-income market practices, facilitating orderly settlement.

The interest payment will be disbursed on 12 August 2026, allowing a two-week settlement window after the record date. This timing complies with market norms and ensures sufficient processing time for payments to bondholders’ nominated bank accounts. Investors should confirm their registration and banking details with the registry ahead of the ex-date to prevent payment delays.

BBSW Rate Role and Market Context

The one-month BBSW rate, set at 4.305% on 13 July 2026, serves as the base for RAMHA interest calculations. BBSW is a key Australian benchmark reflecting short-term interbank lending costs and is widely used in floating-rate debt instruments. Linking interest to BBSW means payments rise or fall in line with market rate changes.

This floating rate exposes investors to market sensitivity: rising BBSW rates increase monthly payments, while falling rates reduce them. The July 2026 BBSW reflects prevailing economic conditions and Reserve Bank of Australia policy. Investors in RAMHA notes effectively take a position on future BBSW movements, with this payment update offering real-time insight into income generated from market trends.

Fixed Margin and Overall Return Structure

The 3.00% fixed margin is a permanent component of the RAMHA interest rate, unchanged over the note’s ten-year term. This margin compensates for credit and liquidity risks associated with RAM Income Capital notes and was established at issuance in September 2025. The total annualised rate combines the floating BBSW rate and fixed margin, here totaling 7.305%.

The fixed margin provides a baseline return, ensuring investors receive at least 3.00% even if BBSW rates decline sharply. This feature enhances the risk-return profile by offering income stability alongside exposure to market rate fluctuations. The prospectus dated 15 September 2025 details the margin’s determination and application conditions.

Maturity and Redemption Details

RAMHA securities mature on 10 April 2032, giving bondholders a defined redemption date about ten years post-issuance. The "CUM RED STEP" designation indicates cumulative redemption features and potential stepped interest rates. Monthly interest payments continue until maturity, when principal is repaid. The long-term nature requires investors to consider interest rate risk and inflation impacts over the holding period.

The redemption process is governed by the Note Trust Deed and prospectus, outlining principal return mechanisms. Investors, especially those nearing retirement, value the monthly income stream but should assess whether the 7.305% initial yield will maintain real purchasing power over time.

Registration and Regulatory Compliance

RAM Income Capital Ltd (ACN 690030187) is an ASX-listed issuer with RAMHA securities trading under ASX code RAMHA. The company complies with ASX Listing Rules and continuous disclosure obligations, including timely market notifications of interest payments and rate changes per Appendix 3A.2 requirements. This ensures investor protection and transparency.

The foundational prospectus dated 15 September 2025, accessible at https://ramgroup.com/docs/prospectus/RAM-Secured-Income-Notes-Prospectus.pdf, provides comprehensive information on rights, risks, and terms. The detailed interest payment notification reflects professional market conduct and equips investors with essential data to manage their holdings effectively.

Monthly Distribution Frequency and Income Pattern

RAMHA securities feature monthly interest payments, typically on the 12th of each month or the next business day if the 12th falls on a weekend or holiday. This frequency appeals to investors seeking consistent cash flow and the benefits of compounding. Each 30-day payment period accrues interest accordingly, with slight day count variations.

This monthly schedule simplifies income forecasting. Investors can estimate annual returns by multiplying monthly payments by 12, though actual amounts will vary with BBSW changes. For July 2026, the AUD 0.6004 payment equates to one-twelfth of the 7.305% annual yield. If rates remain stable, annual income per security would approximate AUD 7.20, but future payments will fluctuate with market rates.

Investor Considerations and Market Monitoring

Investors should monitor the daily updated one-month BBSW rate, available through financial data sources and the ASX website, to anticipate future interest payments. Reserve Bank of Australia policy shifts typically influence BBSW within days, enabling informed expectations on income changes. Additionally, RAM Income Capital’s credit profile affects secondary market pricing, despite the fixed margin structure.

While the immediate market impact of this payment announcement is unclear, consistent and timely payment notifications reflect positively on the company’s financial and administrative stability. Investors should recognize that RAMHA securities are debt instruments with distinct risk profiles from equities. In financial distress scenarios, debt holders have priority over equity but rank below secured creditors. The prospectus includes detailed risk disclosures essential for informed investment decisions.