Solvar Limited (ASX: SVR), a prominent automotive finance provider, has successfully executed its inaugural Asset Backed Securitisation (ABS) for approximately $200 million. This landmark deal represents Solvar’s first term securitisation for its Money3 business, achieving competitive pricing that is expected to improve funding margins by roughly 1.0% per annum.
The ABS transaction involves the transfer of approximately $200 million of Money3’s existing assets into a newly established securitisation trust. The trust will be financed by approximately $60 million of existing Solvar funding, largely transferred from its existing warehouse facility, and around $140 million in fresh funding obtained at a lower cost. Solvar anticipates pre-tax interest cost savings of about $2.0 million over the next three years.
This deal reinforces Solvar’s capital management strategy, aimed at creating a scalable and sustainable funding model to underpin its future growth initiatives. The transaction, structured as a private debt placement, was backed by private credit funds managed by MA Financial Group, a global alternative asset manager, with support from a leading financial services group. The $200 million securitisation increases Money3’s funding capacity, supplementing the existing $510 million wholesale funding limits.
Scott Baldwin, Managing Director and CEO of Solvar, emphasized the significance of this achievement, stating that it represents a pivotal step in accessing the ABS market. He further highlighted the transaction as evidence of the company’s mature structuring, governance, and compliance frameworks. Solvar’s board has approved the release of this information, underscoring the company’s confidence in its ability to expand its loan portfolio while leveraging the ABS market for future transactions.
