The Australian Office of Financial Management has approved investment of up to A$90 million from the Structured Finance Support Fund in a Prospa Group warehouse trust.
Prospa, a small business lender, has originated more than $1.5 billion of loans to date.
Under the SFSF program, which is part of the government’s COVID-19 response, the AOFM has $15 billion to invest in structured finance markets used by smaller lenders, including small ADIs and non-ADIs
Eligible lenders are non-ADIs of any size and ADIs that do not have the capacity to provide the collateral that is acceptable to the Reserve Bank under the term funding facility.
In its most recent update, last month, the AOFM reported that it had used SFSF funds to make 35 investments in securitised assets.
Issuers include Liberty Financial, Pepper, Resimac, RedZed, Think Tank and Firstmac.