A couple of more unusual securitisation deals were finalised yesterday. Neither is notable for its absolute size, but these are both firsts in their more specialised patches of the lending landscape – reverse mortgages and online loans.
ASX listed digital lender MoneyMe Limited finalised a new securitisation deal, backed by personal loans originated by MoneyMe and its wholly owned subsidiary SocietyOne,
"This is the first ABS transaction that combines SocietyOne and MONEYME loan assets, creating efficiencies with one funding arrangement," the company stated in a note to media and investors.
This is the second term asset-backed securitisation transaction from MoneyMe, and its first for 2024. A total of A$178 million in notes were issued, with Moody's rating Classes A to F (inclusive), leaving $9.6m Class G notes unrated.
The company asserted that "the transaction was priced competitively, with the [$115 million] Aaa-tranche priced at 1.35 per cent over 1-month Bank Bill Swap rate (BBSW)."
According to a Moody's media release outlining its ratings for the notes, 16 per cent of the loans in the portfolio were originated by MoneyMe Financial Group Pty Ltd and 84 per cent were originated by SocietyOne Australia Pty Ltd.
"The average current balance of the loans in the pool is $14,793. This is relatively large in comparison to [MoneyMe's first securitisation in 2022], which had an average current balance of AUD7,998," Moody's said.
The weighted average interest rate of the portfolio is 15.4 per cent, and the average loan has more than 43 months to run, and almost 80 per cent of borrowers are in full-time employment.
MoneyMe has been angling for growth since finalising its acquisition of SocietyOne in early 2022 – a move that saw it break into the ASX 300.
"The transaction frees up capital for new loan originations, providing capacity for growth in FY25 and beyond,” Clayton Howes, MoneyMe's managing director and CEO, said.
Moody's stated that "as of March 2024, MoneyMe's total customer receivables amounted to around $1.15 billion."
Lead managers for the transaction were Westpac and Deutsche Bank AG.
Reverse mortgage provider Household Capital also priced its first securitisation for the 2024 calendar year on 18 July. The transaction, the HHC 2024-1 RMBS Trust, is backed by a pool of Australian reverse mortgages originated by Household Capital.
This deal, the inaugural RMBS transaction from Household Capital, was upsized to A$263 million from $249m at launch.
The notes, split into two tranches, have been allocated expected ratings by Moody's of Aa3 (sf) and A2(sf), respectively:
• $224 million Class A notes, priced at 225 basis points over 3-month BBSW
• $39 million Class B notes, at 325 bps over 3-month BBSW.
Citi is the sole arranger and the lead manager for the deal. Settlement is expected on 25 July.