This marks Liberty’s 81st term securitisation and the 14th securitisation of Australian auto loans, bringing the total auto loan securitisation issuance to $4 billion.
The initial launch size of $600m was upsized to $850m due to strong investor demand across all offered tranches.
NAB acted as the sole arranger and a joint lead manager along with BofA Securities and Deutsche Bank.
The transaction includes $850m of notes rated by Fitch Ratings and Moody’s Investors Service. The $663m Class A notes, rated AAA(sf) by both agencies, have a weighted average life of about 1.6 years and were priced at a margin of 120 basis points over the one-month BBSW. The Class B, C, D, E, F, and G notes are expected to be rated AA(sf), A(sf), BBB+(sf), BB+(sf), BB(sf), and NR, respectively, with undisclosed pricing.
“Liberty is a leader in providing households and small businesses with the freedom to choose from a wide range of products and services to meet their financial needs,” said Peter Riedel (pictured above), chief financial officer at Liberty. “We are grateful for the support investors have extended to our business.”
Liberty, award sponsor for the Australian Mortgage Awards 2024, holds a “strong” rating from Standard & Poor’s for servicing auto loans, as well as prime and non-prime residential and commercial mortgages.
Notably, Liberty is Australia’s only investment-grade rated non-bank issuer (BBB outlook stable by S&P) and has maintained an unblemished capital markets record, with no ratings downgrades or charge-offs in its securitisation program.
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