Powered by MOMENTUM MEDIA
the adviser logo
Lender

AOFM to invest $90m in Prospa warehouse

by Hannah Dowling5 minute read

The Australian Office of Financial Management has approved a maximum investment of $90 million into a Prospa Group Limited warehouse trust through the Structured Finance Support Fund.

The Structured Finance Support Fund (SFSF) was announced by the government in March as a $15-billion investment fund, established to support and enable smaller lenders to continue lending to small businesses and individual customers throughout the COVID-19 pandemic.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

Under the SFSF, the Australian Office of Financial Management (AOFM) was provided with $15 billion to invest in structured finance markets often used by smaller lenders that provide consumer and business finance.

The $90-million investment in Prospa’s warehouse facility is the maximum investment amount approved by the delegate under the Structured Finance Support (Coronavirus Economic Response Package) Act 2020 and the actual committed limit may be lower than this.

Advertisement
Advertisement

Commenting on the announcement, Prospa chief executive Greg Moshal said: “We commend the government for recognising how important small businesses will be to our economic recovery and for their support programs like the SME Loan Guarantee Scheme.

“This investment through the SFSF of up to $90 million into our lending capacity, coupled with our $223-million allocation through the SME Guarantee Scheme, comes at a critical time. 

“These programs will work together and enable Prospa to quickly deliver funding to small businesses and support Australia’s economic recovery.”

Since the launch of the SFSF in March, the AOFM has made primary market investments in Firstmac and Liberty, secondary market investments in Pepper, Resimac, LaTrobe and Thinktank, and warehouse investments in Judo Bank, Latitude Financial, Athena Home Loans and Columbus Capital, among other lenders.

[Related: ACCC expands SFSF administration]

AOFM to invest $90m in Prospa warehouse
prospa new
TheAdviser logo
prospa new

Hannah Dowling

Hannah Dowling

AUTHOR

Hannah Dowling is a journalist for The Adviser and Mortgage Business.

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

mark lewis fast ta llosc4

In Memoriam: Mark Lewis, 1963–2022

Mark Lewis passed away on Saturday (13 August). Mr Lewis was a well-known identity in the third-party broker...

READ MORE
anthony waldron mortgage choice ta ithtxm

Broker expertise key for securing right loan: Mortgage Choice

The data, which is derived from a June survey of 1,002 broker customers and conducted by Honeycomb Strategy,...

READ MORE
Mark Bouris new ifa

Brokers need to focus on the ‘value-add’: Mark Bouris

With competition among brokers increasing as the number of brokers rises – coupled with the fact that fewer...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more