Metro Finance Pty Limited (“Metro”) is a first-tier prime Australian commercial auto and equipment lender. Metro targets prime borrowers, small ticket auto and equipment assets, and low volatility industries, resulting in low loss and arrears rate history and expectations. Metro originates its lending through the commercial auto and equipment broker and aggregator industry nationally.
As part of its funding strategy, Metro embarked upon an inaugural Asset Backed securities (ABS) issue to complement existing sources of capital. The issuer required $300m to be raised from the debt capital markets and elected to manage this process via a select group of investors on a private placement basis. FIIG was able to work closely with both Metro and the Arranger to place a tranche of mezzanine notes to the FIIG investor base. The transaction achieved the issuer’s objectives and established an additional source of funding for Metro.
Metro is the latest non-bank financial services business to utilise the bond market to broaden its capital base. FIIG has provided a range of funding solutions to the sector, including:
- Funding diversification to refinance, expand or complement existing funding lines;
- Warehouse and term securitisation issues;
- Corporate senior and subordinated issues;
- Providing growth funding for acquisitions; and
- Optimising the capital structure through extending maturities, fixed or floating rates, secured and unsecured funding structures.