• MoneyMe executes a $517.5m asset-backed securities deal in the auto loan sector
  • It is the company’s second public capital markets transaction for FY25 and largest to date
  • MoneyMe said the deal offered pricing benefits while freeing up capital for further growth of its autopay loan book.

 

Special Report: Non-bank lender MoneyMe has soared ~25% today after announcing a $517.5m asset-backed securities deal with auto loan assets, marking its largest term securitisation to date.

MoneyMe (ASX:MME) has announced the execution of its first ABS deal in the auto asset class through the Autopay ABS 2024-1 Trust, its second ABS transaction in FY25 and largest to date.

MME said the $517.5m term securitisation of auto loan receivables originated via its Autopay product with Deutsche Bank AG and Westpac acting as lead managers.

It is MME’s second public capital markets transaction for FY25, following a $178m ABS deal settled in July, which combined assets from both its MME and SocietyOne branded loans.

In its latest auto loan ABS transaction, Class A1 and Commission notes were rated Aaa (sf) by Moody’s and AAA (sf) by Fitch.

MME said Class A1 notes were priced competitively at 135bps over a one-month bank bill swap rate (BBSW).

Settlement is due on Thursday, pending standard requirements.

 

Providing capacity for growth

MME managing director and CEO Clayton Howes said the $517.5m debut term securitisation of auto loan assets was its largest to date and frees up capital to further grow its Autopay loan book.

“This is our first ABS deal in the auto loan space and a key milestone for MoneyMe. It provides the runway to originate another $0.5 billion in car loans, essentially freeing up capital to nearly double our existing Autopay loan book,” he said.

“As a first-time issuer in this asset class, we’re excited about what this means for our future growth. With major banks exiting auto finance, there’s a significant opportunity for non-bank lenders, and we’re ready to take full advantage with capital-efficient debt funding.”

Howes said there had been high demand for notes with participation from both domestic and offshore investors, and that the expanding engagement creates opportunities for scale and long-term relationships with funders.

“Strong interest from domestic and international investors gives us a solid platform to access global debt capital markets on a much larger scale. It’s a big step forward for us.”

Howes said the deal also demonstrated the quality of MME’s auto loan assets.

“The Aaa (sf) and AAA (sf) ratings for Class A1 and Commission notes, which represent 72.4% of the collateralised notes, highlight the strong credit quality and performance of our Autopay loans,” he said.

 

A positive sign for the sector

Howes said the level of international investor support for an auto loan ABS deal of this size “is a great sign for the sector as a whole”.

“Debt capital markets are supportive of non-bank lenders with demonstrated track records who provide securitisation and wholesale funding structures aligned to their investment mandates”, he said.

He also highlighted that access to competitively priced debt capital benefits consumers in the market for car loans.

“With major banks pulling back from auto finance, deals like this help non-bank lenders fill the gap and offer more affordable financing options.”

 

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.

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