MONEYME’s first ever term securitisation has received an Aaa rating from Moody’s, as the fintech lender beefs up its external funding capacity to $1.65 billion.

Fresh from its record revenues in the third quarter, fintech lending platform MONEYME (ASX:MME) has bolstered its balance sheet by securing and increasing its external funding capacity to the tune of $1.65 billion, with undrawn capacity of $388m.

The company has just completed its inaugural term securitisation transaction deal of its personal loan customer receivables, receiving an Aaa (sf) credit rating from Moody’s.

The transaction is worth $200m and was sold via a private placement to three major Australian investors.

MONEYME also has funding from two major Australian banks, as well as two major international banks via five warehouses and MONEYME increased the capacity of one of these warehouses (its Autopay warehouse) from $300m to $450m in June.

This transaction, along with the term securitisation and existing arrangements, have now increased the company’s external securitisation funding facilities to $1.65bn, and an undrawn capacity of $388m.

These transactions have also further helped to reduce the group’s securitisation cost of funds drawn margin to an average of around 3.1%.

“It’s great to see the consistent step changes being made in our securitisation funding program to facilitate profitable returns and stability in the current economic environment,” said MONEYME CEO, Clayton Howes.

“Our inaugural term securitisation is incredibly exciting, with Moody’s Aaa (sf) rating a testament to our track record of consistent credit performance and underwriting standards.”

 

Ready for the rate rise cycle

Howes is confident that securing this funding will put MONEYME in a strong position during the current rising rate cycle.

“Our undrawn securitisation funding capacity of $388m, supported by the reduction in the cost of funds margin, further positions us well in a rising interest rate and increasingly competitive funding environment.

“We remain focussed on executing our strategy – profitable growth, innovation, maintaining the quality of our loan book, and efficiency and accuracy in credit decisioning thanks to our proprietary lending technology platform,” Howes said.

 

Record quarter

In Q3, MONEYME’s revenue grew 141% on pcp to a record $35m.

The fast growing fintech company also continues to outperform in its loan book, where originations grew by 215% on pcp to $340m in Q3.

The credit quality of the book is also increasing, and its technology has continued to lead the organic growth advantage for the business.

MONEYME’s Autopay business meanwhile, has added significant scale to the Group, with the innovative vehicle finance solution becoming the business’s fastest growing product in just over a year since launch.

MONEYME’s $132m acquisition of SocietyOne in March has created a combined group capable of challenging the hotly contested non-bank lending space in the country.

Both businesses bring complementary distribution capabilities that span across digital, traditional, broker, agent, and dealer channels, as well as delivering improved data.

The post-acquisition integration is currently ongoing, and MONEYME says it wants to aggressively pursue the opportunities provided by SocietyOne as the two businesses combine.

 

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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