Sunday 4 December 2016

Finance firm bundles up Irish car loans

Published 10/05/2016 | 02:30

The deal is made up of 2,075 loan agreements originated by Bluestone since late 2014. Photo: Chris Ison/PA Wire
The deal is made up of 2,075 loan agreements originated by Bluestone since late 2014. Photo: Chris Ison/PA Wire

A COMPANY that provides car finance for customers with poor access to credit has issued its first debt securitisation.

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Bluestone Asset Finance (Ireland) bundled up and refinanced €25m of loans through a financial vehicle dubbed Topaz Asset Finance 2016-1.

The deal is made up of 2,075 loan agreements originated by Bluestone since late 2014 and secured on a mix of new and used cars and commercial asset financed equipment.

Australian-owned Bluestone provides finance through 450 motor dealerships, including loans to customers it says are underserved by the so-called pillar banks.

That includes lending to SME owners who find it difficult to obtain finance due to a lack of credit history or employment status. The securitisation was placed with a single investor. Donal Murphy, Bluestone Ireland's managing director said the deal was a "milestone" for the business and represents a strong endorsement of its specialist loan business.

Peter McGuinness, Bluestone's CEO Europe, said: "The transaction has been supported by a well-established European asset manager who is looking to grow its exposure to Bluestone's credit products in Ireland, and will enable Bluestone to maintain its current growth trajectory."

Part of the securitised deal will be retained by Bluestone, under so called "eat what you kill" rules brought in after the crash to ensure lenders have an incentive not to make and sell on overly risky loans.

Macquarie Bank International acted as arranger and lead manager on the latest transaction.

Bluestone was also advised by law firm McCann Fitzgerald.

Irish Independent

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