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The non-bank lender’s latest asset-backed security transaction has reportedly seen strong demand from first-time investors.
Auto and equipment lender Metro Finance (Metro) has announced the pricing and settlement of its Metro 2024-1 ABS transaction for $600 million, representing a boost from the value at launch ($500 million).
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The transaction saw AAA-rated Class A notes priced at 125 bps, according to the non-bank lender, with “price tightening down the capital structure for a pool of strongly performing, underlying commercial and novated lease receivables”.
Metro noted significant demand across all mezzanine tranches, with greater than five times coverage.
There was also significant interest from first-time investors, according to the non-bank, both domestically and from Europe.
Commenting on the deal, Metro CEO David Albest, who was appointed to the role in August, said he was encouraged not only by the results but also the level of investor interest.
“It’s fantastic to see Metro continue to grow as a lender and inspire market confidence in our products,” Albest said.
“The fact that the latest upsized volume of our auto and equipment ABS transaction for the year attracted new investors from both local and overseas markets, is particularly pleasing.”
Strong demand
It’s been a big year for the auto and equipment lender that announced the appointment of a new chief information officer in May.
And in July, Metro launched a new green lending program MetroEco that offers discounted rates for consumers and small- to medium-sized enterprises that invest in ‘green’ assets, such as electric vehicles, solar panels, and batteries.
The lender has been settling around $200 million in loans every month, according to the announcement, servicing more than 80,000 customers and originating loans through a national network of approximately 4,000 auto and equipment brokers and salary packagers.
“Delivering leading customer service and outcomes is what drives us at Metro. Since its inception, Metro has always taken a more personal approach to lending, and by continuing to listen to our customers and the market at-large, we have been able to offer new products and services that set us apart,” Albest said.
“While the market conditions remain challenging, Metro will continue to lead the way as a lender with compelling products that are right for both our customers and potential investors.”
[Related: Metro Finance names new CEO]
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