About Avanti Finance
Avanti Finance is a well-established New Zealand-based finance company with a number of subsidiaries that focus on four distinct sectors: residential mortgages, motor-vehicle finance, consumer finance and SME lending. Avanti has been lending to New Zealanders since 1991 and more recently to Australians, through its BFS subsidiary. Avanti has a history of profitable growth and increasing market share, achieved by following conservative and responsible lending practices.
Avanti’s target market is middle New Zealand and Australia, and includes borrowers whose financing needs are not always catered for by the tighter credit criteria of the major banks or other mainstream financial institutions. This builds into Avanti’s mantra, to be the “first nonbank choice” for borrowers across a wide range of lending products.
New lending is sourced predominantly through a network of introducers – primarily brokers, advisers and motor-vehicle dealers. Avanti has established strong relationships through these channels, many of which have worked with Avanti for many years. In addition, Avanti generates significant repeat business from existing customers and direct enquiries, which currently accounts for approximately 20% of new business by number of loans.
Ownership and history
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. It raised additional capital to support strong growth, in 2016 and 2019.
|SIZE OF LOAN BOOK||NZ$1.2BN|
|MAKEUP OF LOAN BOOK||RESIDENTIAL MORTGAGES: 47%
MOTOR-VEHICLE LENDING: 33%
CONSUMER LOANS: 16%
BUSINESS LENDING: 4%
|GEOGRAPHIC DISTRIBUTION OF LOAN BOOK||NEW ZEALAND: 93%
|OUTSTANDING DEBT ISSUANCE||SECURITISATION: NZ$215M
SECURITISED WAREHOUSE FACILITIES: NZ$735M
CORPORATE FACILITIES: NZ$140M
Avanti’s funding is provided by a considered mix of shareholder equity, secured medium-term notes from private investors, and structured bank and third-party funding.
Avanti has ABS and RMBS warehouse facilities in place for its mixed consumer-loan portfolio, motor-vehicle book and residential mortgage-backed loans.
In June 2018, Avanti successfully undertook its first public issuance in the form of a NZ$200 million RMBS transaction, following this in 2019 with another NZ$200 million term RMBS deal. Avanti intends to be a regular issuer of RMBS and, in time, ABS as part of its growth strategy.
FOR FURTHER INFORMATION PLEASE CONTACT:
+64 22 651 2052
+64 29 770 0007
nonbank Yearbook 2020
KangaNews's fourth annual guide to the business and funding trends in Australia's nonbank financial-institution sector.