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The fintech lender has announced the pricing of a $406 million asset-backed securities transaction covering automotive loan receivables.
Plenti Group Limited (Plenti) expects the $406 million asset-backed securities (ABS) transaction to settle on or around 9 June 2023, subject to satisfaction of customary conditions precedent. The ABS transaction will cover automotive loan receivables (the Plenti Auto ABS 2023-1).
According to Plenti, the ABS structure was rated by Moody’s and Fitch, with the strength of the credit performance and credit profile of the underlying borrowers reflected in the credit support required for each tranche.
Plenti chief financial officer Miles Drury commented on the transaction: “We are delighted to have completed this $406 million automotive loan ABS transaction, which takes Plenti’s total issuance to over $1.7 billion.
“The transaction was well oversubscribed and priced attractively relative to comparable ABS transactions in recent weeks, reflecting strong support from a broad range of investors, both domestic and offshore.”
National Australia Bank (NAB) acted as arranger. NAB, Deutsche Bank, Westpac, and Standard Chartered Bank acted as joint lead managers.
Plenti experiences strong automotive loan demand
In its trading update for the quarter ended 31 March 2023, Plenti revealed its loan book grew by $47 million in a year with car loans driving the majority of the volume.
According to the non-bank lender’s update, it had $998 million of automotive loans in its portfolio as at 31 March 2023, up 34 per cent on the same period in 2022.
Personal lending also grew, with the book rising from $413 million to $568 million when compared to the prior comparative period, representing a lift of 37 per cent.
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Renewable energy loans, the newest addition to the lender’s suite, grew fastest, however. Plenti had $201 million renewable energy loans in its portfolio at the end of 4Q23, up from $142 million in the same period last year.
Overall, Plenti said it was pleased that its loan book increased to $1.77 billion, 36 per cent above PCP and 6 per cent above prior quarter.
Commenting on the quarter, Daniel Foggo, Plenti’s chief executive, said: “Our continued investment in our technology-led customer experience and efficiency advantages has delivered another strong quarter for Plenti.
“With our continued momentum and healthy net interest margins, we enter our new financial year confident of our ability to drive both strong loan portfolio growth and business profitability.”
[RELATED: Car loans drive up Plenti loan book to $1.77bn]
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