Toyota Finance Australia
About Toyota Finance Australia
Toyota Finance Australia (TFA) is a leading provider of automotive finance and insurance in Australia. TFA is an automotive financier with strong market share that creates value for the Toyota group through the One Toyota value chain.
TFA supports the sale of vehicles by providing dealer financing through its retail-lending and fleet-management offerings, as well as marketing and distribution of vehicles.
TFA was incorporated as a public company in New South Wales in 1982 and is part of the Toyota global group of entities. The principal activities of TFA, which are an integral part of the Toyota group’s presence in Australia, are:
• Financing the acquisition of motor vehicles by retail and commercial customers by way of commercial leases, and consumer and commercial loans.
• Providing bailment facilities and commercial loans to motor dealers.
• Providing vehicle and equipment finance, and fleet-management services to government and corporate customers.
• Selling retail insurance policies underwritten by third-party insurers.
In January 2019, Australian Alliance Automotive Finance, a wholly owned subsidiary of TFA, entered a strategic alliance with Mazda Australia to provide financial services to Mazda dealers and customers. The first Mazda Finance-branded vehicle-financing loan was issued in July 2019 and has continued to contribute to the growth of TFA’s loan book.
|SIZE OF LOAN BOOK||A$19.7BN|
|MAKEUP OF LOAN BOOK||TERM LOANS: 75%
OPERATING LEASES: 8%
FINANCE LEASES: 4%
TERM PURCHASE: 2%
|GEOGRAPHIC DISTRIBUTION OF LOAN BOOK||AUSTRALIA: 100%|
|OUTSTANDING DEBT ISSUANCE||CP: A$4.7BN
SECURITISATION WAREHOUSE FACILITIES (PRIVATE): A$2.9BN
TFA supports Toyota’s global vision to transform from an automotive company into a mobility company, providing new and innovative transport-related services. In June 2021, Toyota Australia launched its Kinto car-sharing service, providing motorists with the flexibility to book and drive a Toyota vehicle through the Kinto application.
Ownership and capital structure
TFA is a wholly owned subsidiary of Toyota Financial Services Corporation (TFSC) and TFSC is a wholly owned subsidiary of Toyota Motor Corporation (TMC). TMC is a Japanese corporation with annual turnover of more than ¥27 trillion, that manufactures eight million vehicles per year from more than 60 manufacturing facilities, sells vehicles across 200 countries and employs a workforce of more than 366,000 people. TFSC is a Japanese corporation that manages TMC’s worldwide financial-services operations.
Debt securities issued by TFA have the benefit of a credit support agreement (CSA) with TFSC, which in turn has a CSA with TMC.
TFA focuses on funding diversity and liquidity in a variety of markets, currencies, products and investor groups. TFA has a range of funding platforms and processes in place that provide flexibility to react to opportunities and volatility, including CP (domestic, euro and US), securitisation, domestic and euro MTN programmes issuing into Australia, Europe, the UK and Asia, bilateral bank-loan funding with long-established relationships, and Uridashi (Japanese retail bond) issuance.
TFA continues to look for new sources and types of funding as part of its diversification strategy and to keep up with changes in investor preferences.
TFA’s rating allows it to access funding at levels competitive with Toyota’s global credit curve. TFA’s bonds and CP are rated by S&P Global Ratings at A+/stable/A-1+, and by Moody’s Investors Service at A1/stable/P-1. TFA’s ratings are equalised with TMC, as it is a core subsidiary and benefits from CSAs.
The Australian dollar market is TFA’s home market and remains one of its core funding options. TFA is a frequent, benchmark size issuer in Australia and maintains an active investor-relations programme, domestically and offshore, to foster its global investor base.
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+61 402 131 229
nonbank Yearbook 2021
KangaNews's sixth annual guide to the business and funding trends in Australia's nonbank financial-institution sector.