MoneyMe Closes Record $365M ABS Deal to Fund Growth at Lower Funding Costs

MoneyMe executes record $365.4 million personal loan ABS transaction

MoneyMe has announced a $365.4 million asset-backed securities transaction through the MME PL ABS 2026-1 Trust, with settlement scheduled for Thursday, 21 May 2026. Deutsche Bank acted as Arranger, with Deutsche Bank, Standard Chartered and Westpac serving as Joint Lead Managers. The transaction marks MoneyMe’s largest personal loan ABS transaction to date, representing an 80% increase on the previous largest deal (MME PL 2025-1 at $202.75 million). This is the fintech lender’s third public capital markets transaction for FY26, bringing total ABS issuance to $1.023 billion for the financial year.

What is an asset-backed securities transaction?

An asset-backed securities (ABS) transaction involves a lender packaging loan receivables (money owed by borrowers) and selling them to a trust entity. The trust then issues notes to investors, who receive returns generated from borrower repayments on the underlying loans. For a fintech lender like MoneyMe, this structure provides upfront capital that can be recycled into new loan originations, reducing reliance on traditional bank facilities or equity capital raises.

ABS transactions allow the company to fund growth whilst diversifying its capital sources and accessing institutional funding markets at competitive rates. This funding model is particularly important for scaling lending operations efficiently, as it enables the lender to maintain loan growth without proportionally increasing balance sheet risk.

Transaction structure and credit ratings

The Class A notes represent 63% of the pool and, along with the Commission notes, have been assigned expected AAA (sf) ratings from Fitch Ratings. The Class A notes priced at 120 basis points over 1-month BBSW, reflecting competitive institutional terms. Notes were allocated to both new and existing investors, with domestic and offshore participants. The transaction attracted significant excess demand relative to the amount of notes offered.

AAA ratings on senior notes indicate institutional confidence in the quality of MoneyMe’s loan book. The competitive pricing and excess demand suggest strong market appetite for the company’s securitised assets, which supports both capital efficiency and margin expansion.

What drives AAA ratings on ABS transactions?

Credit ratings on ABS notes reflect the quality and expected performance of the underlying loan receivables. Higher ratings are typically achieved when the loan portfolio demonstrates strong borrower credit profiles, consistent repayment patterns, and low default rates. MoneyMe’s stated strategy of focusing on high credit quality borrower segments directly supports favourable ratings outcomes. Consistent loan book performance across originations feeds through to the credit enhancement structures that protect investors, enabling the company to access capital markets on competitive terms.

CEO outlines capital and margin benefits

Clayton Howes, Managing Director and CEO, outlined the strategic importance of the transaction, emphasising three core benefits: increased capital available for growth, reduced cost of funds, and improved margins. The deal was upsized due to strong demand from local and international investors. Management connected the AAA rating achievement to MoneyMe’s focus on high credit quality borrower segments and the underlying performance of the portfolio.

Clayton Howes, Managing Director and CEO

“This is MONEYME’s largest personal loan ABS transaction to date and our third ABS deal for FY26, bringing total issuance for the financial year to $1.023 billion. It increases our capital available for growth while reducing our cost of funds and improving margins.”

The transaction was the third ABS deal for FY26, with total issuance for the financial year now at $1.023 billion. Management explicitly linked the execution to margin expansion and growth capital, both critical drivers for fintech lender profitability. The ability to secure AAA ratings whilst upsizing the transaction demonstrates improving market confidence in MoneyMe’s underwriting quality and portfolio management capabilities.

FY26 capital markets momentum

This transaction marks the third public capital markets deal in FY26, demonstrating consistent execution across the financial year. The trajectory reflects a maturing funding platform:

1. Total FY26 ABS issuance now stands at $1.023 billion, representing material scaling of the company’s securitisation programme.
2. The $365.4 million transaction is 80% larger than the previous largest deal (MME PL 2025-1 at $202.75 million), indicating MoneyMe’s ability to access deeper institutional pools.
3. Strong institutional participation from both domestic and offshore investors signals broadening market confidence in the loan book quality and business model.

Repeated successful ABS issuance at increasing scale demonstrates MoneyMe is establishing a repeatable, scalable capital markets programme. This reduces reliance on any single funding channel and provides flexibility to optimise capital structure based on market conditions.

The competitive pricing achieved on the Class A notes, combined with significant excess demand, suggests the company is building pricing power within institutional funding markets. For investors, this capital markets momentum is significant because it supports loan book growth without proportional equity dilution, whilst simultaneously improving net interest margins through lower blended funding costs.

Ready to Learn More About MoneyMe’s Capital Markets Strategy?

MoneyMe’s record ABS transaction demonstrates the company’s expanding access to institutional capital and improving funding cost structure. The $1.023 billion in FY26 issuance signals a maturing funding platform that supports scalable loan book growth.

To explore MoneyMe’s full funding strategy and growth outlook, visit the MoneyMe investor centre for detailed company analysis and investment updates.