Australian private lender MoneyMe (ASX: MME) has executed its debut asset-backed securities deal with a $517.5 million term securitisation of auto loan receivables.

The transaction, which originated through the company’s Autopay product, was reported to have been priced competitively with Class A1 notes priced at 135 basis points over one-month bank bill swap rates.

The demand for notes exceeded the volume offered in the transaction, provisional settlement of which is set for 24 October.

Pricing advantages

Managing director Clayton Howes said the securities deal would deliver pricing advantages while freeing up capital for the company’s growing Autopay loan-book.

“We are very pleased with this term securitisation, which is our second asset-backed securities transaction for the year and our largest term securitisation deal to date,” he said.

“The Aaa (sf) and AAA (sf) credit ratings for the Class A1 and commission notes represent 72.4% of our collateralised notes and reflect strong credit quality and performance of our Autopay loans.”

He said the company’s access to debt capital markets had attracted engagement from domestic and offshore investors and created advantages from scale and long-term relationships.

‘Non-bank challenger’

MoneyMe markets itself as a “non-bank challenger,” using smart technology and digital-first products to offer innovative car loans, personal loans and credit cards.

The company reported a strong end to the 2024 financial year, with a 23% increase in new loan originations to $574m and a 55% boost to secured assets within a $1.2b loan-book.

It achieved gross revenue of $214m and maintained a $23m net profit after tax (up from $12m in 2023), reflecting scale and technology advantages, higher credit performance and a realised deferred tax asset.

Loan-book growth

Mr Howes anticipated continued loan-book growth and profitable returns in the new financial year.

“Our relentless focus on innovation continues to drive operational efficiencies and strong customer satisfaction, while our B Corp certification helps ensure we contribute to a more inclusive, equitable and sustainable society,” he said.

“Looking ahead, we will continue to execute on our strategy by extending our technology advantage, prioritising higher credit quality and secured assets and expanding our funding program for capital-efficient growth.”