Australian independent non-bank lender, Metro Finance, has priced and settled its Metro 2024-1 auto and equipment ABS transaction for an upsized volume of $600 million, boosting it from $500 million at launch.
The AAA-rated Class A notes priced 125 basis points (bps) and there was significant price tightening down the capital structure for a pool of strongly performing, underlying commercial and novated lease receivables, with greater than five times coverage across all mezzanine tranches.
Of particular note, the latest transaction saw a number of new domestic and European real money investors participate for the first time in a Metro ABS transaction.
Commenting on the new $600 million term deal, newly appointed CEO, David Albest said it was an exciting time for the business, and the latest results were a sign of things to come.
“It’s fantastic to see Metro continue to grow as a lender and inspire market confidence in our products. 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,” he said.
The lender settles approximately $200 million in loans per month or $2 billion each year, servicing more than 80,000 customers and originating loans via its national network of around 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 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.”
Metro offers a range of innovative and flexible products for business and consumers. Recently, Metro unveiled an Australian-first, its new MetroEco product, designed to make it easier and more affordable for small-medium businesses to invest in environmentally friendly assets, such as electric vehicles, farming equipment, solar panels and charging solutions.