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The non-bank lender’s second ABS issuance has drawn a range of investors and will enable it to accelerate its business lending growth.
SME lender ScotPac has priced a $250 million asset-backed securitisation (ABS), the second such deal after the non-bank lender’s first ABS issuance in February 2024.
The pricing of the asset-backed deal was tighter than its initial ABS despite continued volatility and high volumes in the market, ScotPac said.
Commenting on the ABS, the SME business lender said: “The transaction was well supported by a range of investors, reflecting confidence in our portfolio performance and long-term strategy.”
Scotpac said that the deal would strengthen its ability to support business growth across Australia and New Zealand.
Speaking on the issuance, ScotPac treasurer Bridget Keating said: “This latest securitisation further enhances the diversity and scale of our funding base and strengthens our capital efficiency.
“We wish to acknowledge the continued support of our existing investors and welcome the new suite of investors to ScotPac’s funding program.”
ScotPac CEO Jon Sutton said: “We are delighted with the strong investor response to our second ABS issue which demonstrates the continued strength of the ScotPac brand and our business model.
“This transaction further strengthens our funding capacity to support our ongoing commitment to providing innovative funding solutions to our customers.”
Citi arranged the transaction and acted as joint lead manager, together with National Australia Bank (NAB).
ScotPac’s latest ABS follows fellow non-bank lenders Pepper Money and Firstmac, which both undertook capital raises earlier this year to secure more than $2 billion between them.
Pepper Money priced a $1.03 billion vehicle and equipment ABS transaction that settled in March, while in the same month, Firstmac completed an oversubscribed $1 billion residential mortgage-backed securities (RMBS) issue.
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