Latitude Financial secures $1.4 billion warehouse funding
Latitude Financial has secured nearly $1.4 billion in funding from domestic and overseas investors after completing an oversubscribed securitisation offer.
The $1.383 billion raising for Latitude’s Australian sales finance, interest free instalments and credit card warehouse provides the business with a $1.5 billion facility, upsized from $1.3 billion.
This raising includes increases from several existing investors, a major new investor for Latitude and $237 million from the Australian Government’s Australian Office of Financial Management (AOFM). It was oversubscribed by nearly $200 million, despite the impact of COVID-19 on capital markets.
Latitude’s Managing Director and CEO Ahmed Fahour said the strong investor sentiment illustrated the market’s confidence in the quality of the company’s loan book and more generally in Australia’s finance sector.
“It is significant in this economic climate that Latitude has successfully completed this refinancing for a further 2.5 year term well ahead of the September due date,” he said.
“Our interest free instalments business continues to perform well despite the impact of COVID-19 on retail sales, reflecting the strength of our merchant partnerships and strong demand from consumers for interest-free shopping. This funding ensures we have excess capacity in our sales finance and cards warehouses to pursue further growth opportunities in support of our long-term partners and their customers.”
Latitude has a diverse and well-established funding platform comprising six warehouse facilities and six public trades outstanding across Australia and New Zealand, matched to product and geography. This latest refinancing means Latitude will have total excess funding of $1.7bn to support its customers and partners.
Latitude has a broad investor base both domestically and offshore and continues to be a programmatic issuer in the public ABS markets.
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