Tuesday 22 January 2019

Car finance company Bluestone raises €40m in financing

Donal Murphy, the managing director of Bluestone Ireland
Donal Murphy, the managing director of Bluestone Ireland
Ellie Donnelly

Ellie Donnelly

Car finance company Bluestone Asset Finance has raised €40m in financing through its fourth Asset Backed Security (ABS) issuance in Ireland.

The portfolio is made up of 1,913 loan agreements originated by Bluestone during 2017, with the ability to sell additional receivables into the transaction.

It is secured on a mix of new and used motor vehicles and other commercial asset equipment.

The financing has been raised through the Topaz Asset Finance 2017-A2.

"Bluestone experienced strong growth in 2017 on foot of sustained demand through our nationwide network of dealership partners from customers seeking alternative financial solutions to those offered by the Pillar banks. In 2018, Bluestone will widen its offering with a new product designed to assist franchise dealers," Donal Murphy, Bluestone Ireland’s MD, said.

In addition to its new franchise product offering, Bluestone will continue to provide auto finance to customers that may experience difficulties in securing loans. The company charges consumers an interest rate of 10.25pc upwards, but the rate charged depends on the loan to value ratio of the car.

Bluestone has advanced in excess of €120m in finance to customers since entering the market in late 2014.

Founded in 2000 and headquartered in England, the company specialises in loan origination, consumer loan purchase and debt servicing.

The company, which has offices in UK, Ireland, the Philippines and Australia, currently has around 230 employees.

In 2011 Bluestone entered the Irish market through the purchase of a €350m asset finance portfolio from Bank of Scotland, and added another two consumer and asset finance portfolios in 2013 and 2014.

Initially focused on the loan servicing of these portfolios, Bluestone’s asset finance lending business launched in late 2014 distributing products through intermediaries such as motor dealers and finance brokers.

The business is owned by a mix of private and institutional shareholders including LDC, the wholly owned subsidiary of Lloyds Banking Group, Australia’s Macquarie Bank and Bluestone’s management team.

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