Metro Finance Prices $1.2 Billion ABS Transaction, Its Largest Issuance to Date

Metro Finance, one of Australia’s leading independent non-bank lenders for asset finance, today announced it has successfully priced a $1.2 billion asset-backed securitisation (ABS) transaction, the largest single ABS issuance in the company’s history.

The transaction was upsized from an initial launch volume of $750 million on the back of strong investor demand, with the AAA-rated senior notes pricing at 96 basis points.

A total of 30 investors participated in the deal, spanning Australia, the UK, Japan, Europe, the USA, Asia ex-Japan and New Zealand, underscoring the continued breadth and depth of Metro’s global investor base.

The transaction marks Metro’s 15th term ABS deal since establishing its securitisation program in 2018, taking total lifetime term issuance past $9 billion. The transaction also surpasses Metro’s previous issuance record of $1 billion.

Commenting on the record transaction, Metro Finance CEO, David Albest, said the result reflected the strength and maturity of the business’ capital markets program.

“Pricing our largest ever ABS transaction, and upsizing it well beyond initial launch volume, is a clear vote of confidence from the market in Metro’s growth trajectory and the quality of our loan book,” David said.

“This result gives us the funding capacity to support Metro’s ongoing origination growth across our commercial, consumer and novated products. It also strengthens our recent expansion into dealer finance, broadening our origination base and creating a more diversified business across multiple distribution channels,” David added.

Metro Finance Treasurer, George Pappas, said the transaction highlighted the growing global appetite for high-quality Australian auto and equipment ABS.

“Thirty investors across seven regions, and pricing inside our expectations for a AAA-rated tranche, shows just how far Metro’s reputation in capital markets has come. It’s a strong endorsement of the discipline, diversification and performance we’ve consistently delivered since our first term deal in 2018,” George said.

Metro works with a national network of introducer partners to provide commercial asset finance, consumer car finance, novated leasing and sustainable finance solutions to customers across Australia.