Special Report: MONEYME has achieved a significant milestone with its latest ABS deal, marking its first public transaction and integrating assets from both MONEYME and SocietyOne loans.
The non-bank lender has priced a $178 million asset-backed securities (ABS) deal scheduled to settle today, July 18.
Acting with Westpac and Deutsche Bank as lead managers, this milestone marks MONEYME (ASX:MME) first public transaction, combining assets from both its MONEYME and SocietyOne branded loans.
Credit ratings agency Moody’s has rated the securities, with the $114.81 million Class A Notes (the largest portion) Aaa (sf).
Priced on July 11, the deal saw strong investor interest, allowing MONEYME to secure favourable terms.
Strong market demand
The Aaa (sf) tranche of the package was priced at 1.35% over the relevant swap rate, the tightest of MONEYME’s securitisation transactions to date, reflecting strong market demand and underscoring the quality of MONEYME’s loan portfolio.
Clayton Howes, MD and CEO of MONEYME, said he was very pleased with this $178m term securitisation for personal loan assets as it marked the company’s first public securitisation deal on the MONEYME program and the first to include both MONEYME and SocietyOne personal loan assets.
“Moody’s Aaa (sf) rating of the Class A notes, which constitute the largest portion of the deal structure, reflects the quality of the underlying assets that realises price advantages,” Howes added.
“It’s great to see our funding program deliver another successful ABS deal with strong engagement from debt capital markets.
“Their was strong buyer support from domestic and international institutional investors. As well as prioritising existing investors for allocations, it is also pleasing to welcome new institutional investors into our funding program.
“The transaction frees up capital for new loan originations, fuelling growth and profit in FY25 and beyond,” Howes said.
Strong momentum
Today’s transaction follows MONEYME’s inaugural private placement in 2022 and a public deal under the SocietyOne funding program in 2023, showcasing the company’s continued presence in the securitisation market.
The latter deal saw the company pricing a $150m securitisation for its personal lending brand SocietyOne to further facilitate profitable returns in a challenging market.
Most recently, MONEYME secured an agreement with its debt funders to expand and double its Autopay warehouse facility, increasing it from $375 million to $750 million. The move aims to strengthen MONEYME’s position in Australia’s automotive financing sector.
MONEYME has also maintained its positive momentum with a solid start to the year, delivering $6m in statutory profits in 1H24.
After a strong first half, the company’s Q3 saw stability as the fintech lender focused on improving its loan book quality, refining funding structures, and enhancing its technology platform.
Now read: MONEYME reports solid Q3, emphasises higher credit quality book as it prepares for growth
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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