MONEYME (ASX: MME) Announces Successful $455.4M Auto Loan Securitisation
MONEYME (ASX: MME) has successfully completed a $455.4 million auto loan asset-backed securities (ABS) transaction through the MME Autopay ABS 2025-1 Trust. This deal establishes the company as a programmatic issuer with recurring access to institutional capital markets. This MONEYME Autopay ABS transaction is the company’s second public securitisation in the auto lending asset class within 13 months, demonstrating a repeatable funding capability.
The deal secured expected AAA ratings from both Fitch Ratings and S&P Global on 78% of the note pool, with competitive pricing achieved at 110 basis points over the 1-month BBSW for Class A notes. Settlement is scheduled for 27 November 2025, with Deutsche Bank serving as Arranger and Deutsche Bank AG, JP Morgan, and Westpac acting as Joint Lead Managers.
Transaction Structure and Institutional Participation
The securitisation pools auto loan receivables originated through MONEYME’s Autopay product into a structured trust. The offering achieved substantial institutional support from both domestic and offshore investors, with notes allocated to a combination of returning participants from the company’s debut transaction and new investors.
The structure reflects robust credit quality through its senior note composition. Class A1 notes, accounting for 78% of the pool, along with Commission notes, received expected AAA ratings from the dual rating agencies. This design provides significant credit enhancement for senior noteholders whilst optimising MONEYME’s funding costs.
Deutsche Bank’s role as Arranger, supported by tier-one Joint Lead Managers, validates the institutional credibility of this funding initiative. The involvement of major banking participants signals confidence in both the quality of the asset pool and MONEYME’s ability to execute complex capital markets deals.
Key Transaction Components:
- Transaction size of $455.4 million in auto loan receivables
- Expected AAA (sf) ratings from Fitch Ratings and S&P Global
- Class A notes priced at 110 basis points over 1-month BBSW
- 78% of the pool structured as Class A1 notes
- Settlement date of 27 November 2025
- International investor participation alongside domestic institutions
The competitive pricing achieved on Class A notes reflects the portfolio’s quality and MONEYME’s established track record. The 110 basis point margin over BBSW represents favourable terms relative to alternative funding sources, directly improving the company’s cost of funds.
What is the MONEYME Autopay ABS Transaction Structure?
This funding mechanism involves the company packaging pools of auto loans into a trust and issuing securities to institutional investors. The structure allows MONEYME to convert illiquid loan portfolios into immediate cash proceeds, which can then be redeployed into new originations.
MONEYME transfers auto loan receivables from its Autopay product to the MME Autopay ABS 2025-1 Trust. The trust then issues notes to investors, who receive returns from the monthly repayments made by car loan borrowers. In return, MONEYME receives upfront cash from the note sales, creating an effective capital recycling mechanism.
Credit rating agencies assess both portfolio quality and structural protections to assign ratings. For this deal, Fitch Ratings and S&P Global evaluated borrower credit profiles, vehicle types, historical repayment performance, and credit enhancement levels to arrive at their expected AAA ratings on the majority of notes.
The note structure allocates risk across different classes. Senior notes receive first priority on borrower repayments and carry the highest ratings, appealing to conservative institutional investors. Subordinated classes absorb potential losses first, providing protection for senior noteholders.
| Transaction Component | Details |
|---|---|
| Total Pool Size | $455.4 million |
| Class A1 Notes | 78% of pool |
| Expected Ratings | AAA (sf) from Fitch and S&P |
| Class A Pricing | 110bps over 1-month BBSW |
| Settlement Date | 27 November 2025 |
| Arranger | Deutsche Bank |
| Joint Lead Managers | Deutsche Bank AG, JP Morgan, Westpac |
Establishing Programmatic Issuer Status
The completion of this deal marks the company’s second auto securitisation in 13 months, following the debut of the MME APY ABS 2024-1 Trust in October 2024. This frequency establishes MONEYME as a programmatic issuer with repeatable capital markets access.
Clayton Howes, MONEYME’s Managing Director and CEO, stated: “MONEYME’s return to the capital markets with our second auto ABS transaction will deliver improved capital efficiencies and a lower cost of funds. The beneficial terms reflect our growing loan book, strong portfolio performance and funding execution capability.”
The programmatic issuer designation is significant for funding strategy. It demonstrates MONEYME can return to institutional markets regularly to refinance loan portfolios, creating a sustainable funding model that supports ongoing growth.
Furthermore, MONEYME now operates programmatic securitisation platforms across two distinct asset classes—personal loans and auto loans. This dual-platform capability reduces funding concentration risk and provides flexibility.
Howes emphasised this strategic achievement: “MONEYME has now established itself as a programmatic issuer in both personal loan and auto loan asset classes, supported by a diverse group of Australian and overseas investors.”
The participation of both returning and new institutional participants indicates broadening market confidence. In addition, international investor involvement expands MONEYME’s funding base beyond domestic markets, enhancing funding resilience.
How Does the MONEYME Autopay ABS Transaction Improve Capital Efficiency?
This asset-backed securities transaction directly enhances capital efficiency by converting illiquid auto loan portfolios into immediate cash. The company can redeploy this capital to originate new loans without requiring equity raises, accelerating return on equity.
The AAA ratings on 78% of notes reflect strong underlying credit metrics and allow MONEYME to access institutional capital at competitive rates. Lower funding costs translate directly to improved net interest margins, providing a sustainable advantage.
The capital recycling mechanism inherent in the securitisation accelerates return on equity. MONEYME originates loans, pools them, and then sells the receivables to free capital for new originations. This velocity increases the number of times capital can be deployed annually.
Capital Efficiency Metrics:
- Class A notes priced at 110 basis points over BBSW
- AAA-rated portion represents 78% of the pool
- Dual validation from Fitch Ratings and S&P Global
- $455.4 million capital freed for redeployment
- Six-day execution timeline from announcement to settlement
What Role Do Rating Agencies Play in the MONEYME Autopay ABS Transaction?
Credit rating agencies provide an independent assessment of security quality in an ABS transaction. Both Fitch Ratings and S&P Global assigned expected AAA (sf) ratings to the Class A1 notes and Commission notes, signifying the highest credit quality with minimal expected default risk.
The rating process involves a detailed analysis of multiple factors. These include the credit quality of the underlying auto loan portfolio, historical performance data such as delinquencies and losses, and the structural protections built into the transaction. For instance, credit enhancement mechanisms like overcollateralisation and subordinated note classes are assessed to determine their ability to absorb potential losses, thereby protecting senior noteholders and justifying the high credit rating.
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