MoneyMe scores major uplift to its warehouse facility and taps bond market to support record growth
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With loan originations growing at record pace, fintech lender MoneyMe is staying busy in wholesale funding markets.
Fintech lender MoneyMe (ASX:MME) is gearing up for further growth in customer originations, by securing an increase in its primary wholesale facility and also tapping into the bond market.
The company said it was finalising documentation to significantly restructure its primary warehouse facility (MME Horizon 2020 Trust or HW20) by 47% to $338 million, an increase of $108 million.
MoneyMe’s CEO, Clayton Howes said he was delighted to have been able to attract two of Australia’s leading securitisation mezzanine investors into the Horizon 2020 warehouse.
The restructuring will involve a refinancing of the $80 million commitment by the Australian Office of Financial Management (AOFM) to a further capacity total of $113 million.
In addition, the restructuring includes a 50% increase, or $75 million, in the major bank’s HW20 senior note commitment to $225 million.
The upsize and restructuring of the facility will support MoneyMe’s accelerating customer originations growth, both from the increased facility size as well as the ability to fund a broader range of assets, in particular its Autopay receivables.
To further strengthen its coffers, MoneyMe said it has also successfully closed a $7 million tap of its corporate bond, on the same terms as disclosed to the market in April 2021.
The note issuance reflects strong investor sentiment and demand, providing MoneyMe with further capital to support growth in Autopay and its other products.
“These funding changes give MoneyMe greater strength to grow the business at the pace we’ve seen the last six months,” commented Howes.
“The ability to now fund Autopay receivables with our major bank warehouse facility means we can continue to exploit the exceptional traction we have seen to date with this new innovation, giving us more opportunity to service more dealerships and brokers signing up to use Autopay. “
With big banks moving back from Australia’s $12 billion automotive finance market, non-bank lenders such as MME are looking to snap up market share with nimble lending options that suit the demands of modern consumers.
As a measure of Autopay’s early growth, the platform had already generated more than $1 million in sales before its official launch in May.
Looking ahead, MME expects Autopay to contribute to ongoing loan growth, after it put together a string of record monthly lending results in the first half of the year.
By securing an increase in its funding facility today, the company is eyeing even stronger profit margins in the years ahead as it establishes a major footprint in Australia’s fintech lending market.
This article was developed in collaboration with MoneyMe, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.