Digital lender executes first Autopay ABS deal

The settlement of the asset-backed securities (ABS) deal in the auto asset was completed yesterday (24 October), valued at $517.5 million of auto loan receivables, originated through MONEYME’s Autopay product.

The lender has confirmed that the lead managers were Deutsche Bank AG and Westpac and marks MONEYME’s second public capital markets transaction for the financial year 2025 and its largest one to date.

The Class AI and Commission notes were rated Aaa (sf)/AAA by Moody’s and Fitch, respectively, with the transaction being priced competitively (Class A1 notes were priced at 135 bps over one-month BBSW).

According to the lender, the demand for notes exceeded the volume offered with both existing and new investors participating in the transaction.

Clayton Howes, CEO and managing director of MONEYME, said: “This is our first ABS deal in the auto loan space and a key milestone for MONEYME. It provides the runway to originate another $0.5 billion in car loans, essentially freeing up capital to nearly double our existing Autopay loan book.

“As a first-time issuer in this asset class, we’re excited about what this means for our future growth. With major banks exiting auto finance, there’s a significant opportunity for non-bank lenders, and we’re ready to take full advantage with capital-efficient debt funding. Strong interest from domestic and international investors gives us a solid platform to access global debt capital markets on a much larger scale. It’s a big step forward for us.

“The level of international investor support for a debut auto ABS deal of this size is a great sign for the sector as a whole. Debt capital markets are supportive of non-bank lenders with demonstrated track records who provide securitisation and wholesale funding structures aligned to their investment mandates.

“Access to competitively priced debt capital also benefits borrowers. With major banks pulling back from auto finance, deals like this help non-bank lenders fill the gap and offer more affordable financing options.”

This comes as MONEYME announced a boost in its loan book and originations for the period ending 30 June 2024, with loan originations increasing by 23 per cent to $547 million, up from $466 million in the prior period.

Additionally, MONEYME’s loan book has increased by 6 per cent to $1.2 billion in FY24, up from $1.1 billion in FY23.

[RELATED: MONEYME records boost to loan book and originations]

Adrian Suljanovic is a journalist at Broker Daily with more than two years experience reporting on all facets of the third party distribution channel.

Adrian has written for a range of business and finance titles including IFA, Investor Daily and Lawyer’s Weekly before joining the mortgages team in 2022.

He graduated from the University of Wollongong in 2021 gaining a Bachelor of Communication & Media with a major in Digital & Social Media.

E-mail Adrian at: This email address is being protected from spambots. You need JavaScript enabled to view it.