Issuer profile: Avanti Finance

Key company and debt-issuance information on Avanti Finance. Uploaded 15 October 2018.

Size of loan book NZ$613m
Makeup of loan book Long-term residential mortgages: 53%
Short-term interest-only mortgages: 13%
Consumer loans: 33%
Business lending: 1%
Geographic distribution of loan book New Zealand: 100%
Outstanding debt issuance Securitisation: NZ$200m
Securitised warehouse facilities: NZ$500m

Source: Avanti Finance September 2018

About Avanti Finance

Avanti Finance (Avanti) has been in the New Zealand consumer market for more than 28 years providing a broad range of consumer-loan solutions and loan servicing. While the company has a long history of short-term mortgage lending over residential property, as well as providing motorvehicle and personal loans, more recently Avanti began offering long-term residential first mortgages.

Avanti has steadily grown its presence in the residentialmortgage market over the last three years, providing a range of specialist long-term mortgage products that complement its broader range of property, personal and, more recently, SME loan products under the GetCapital name. Avanti has built on its strong relationships with loan introducers and enjoys excellent support. Avanti is well established on all the major aggregation group-lending panels in New Zealand.

Ownership and capital structure

Avanti is privately owned with a majority interest held by its founder, Glenn Hawkins, supported by a range of private investors. Avanti is strongly capitalised with a conservative dividend policy, and as such the company’s capital base has grown steadily since inception. Additional capital to support strong growth was raised in 2016. Avanti’s board comprises individuals with extensive business experience and knowledge of the finance industry.

Funding strategy

Avanti’s funding is provided by a considered mix of shareholder equity, secured medium-term notes from private investors and structured bank funding.

Avanti has ABS and RMBS warehouse facilities in place for its mixed consumer-loan portfolio and residential mortgagebacked secured loans, respectively.

In June 2018, Avanti successfully undertook its first public issuance comprising a NZ$200 million RMBS transaction. The company intends to be a regular issuer of RMBS as part of its growth strategy and is also planning to be a future issuer in the asset-backed securities market.

The medium-term RMBS notes have tenors ranging from 12 to 48 months with the majority of investors being long-term Avanti supporters with reinvestment at maturity.