About Metro Finance
Metro Finance was established in 2011 as a first-tier, prime Australian commercial auto and equipment lender. Metro targets high-quality SME borrowers who operate in low-volatility industries and are seeking to purchase small-ticket auto and equipment assets. This strategy had resulted in a low loss- and arrears-rate history.
Metro has recently experienced significant growth in origination volume, which is expected to continue at the current trend rate over the course of the next year.
Metro originates its lending through the commercial auto and equipment broker and aggregator industry nationally. It applies an accreditation process to the selection of its originators. Metro’s network of brokers provides it with a large footprint of origination partners around Australia, though predominantly concentrated on the eastern seaboard.
Ownership and capital structure
Since inception, Metro has been privately owned by the Balmain group and Metro’s chief executive, Phillip Crossman. Balmain is a leading Australian nonbank investor and lender in the commercial-property debt sector.
Metro uses a securitisation funding model. All loans are originated into warehouses and periodically termed out with ABS bond issuance to domestic and offshore debt capital markets investors.
Metro currently has three warehouses and has completed six ABS bond transactions. Funders and investors cover Australia, Europe, Asia and North America.
During 2021, Metro issued its largest ABS transaction, a A$750 million deal that was well supported by domestic and offshore investors. The transaction was Metro’s first issuance that was European and Japanese risk-retention compliant, further diversifying the breadth of Metro’s investor base.
Metro will continue to be a regular issuer in the domestic and international markets.
|SIZE OF LOAN BOOK||A$2BN|
|MAKEUP OF LOAN BOOK||
PRIME COMMERCIAL, AUTO AND EQUIPMENT LOANS TO SME BORROWERS
|GEOGRAPHIC DISTRIBUTION OF LOAN BOOK||AUSTRALIA: 100%|
|OUTSTANDING DEBT ISSUANCE||ABS ISSUANCE: A$1.5BN|
Metro competes directly with the major banks in the prime commercial auto and equipment space. Metro differentiates itself from competitors via a high-service model that relies on an advanced technology platform, product innovation, high-quality customer service and quick application turnaround times.
Metro’s product offering includes commercial-finance agreements, finance leases and novated leasing. It also has a green-loan offering for electric and hybrid vehicles.
Metro continues to focus on expanding its product offering to drive growth and diversify its loan book. The loan portfolio is well-diversified and highly granular. Risk is diversified across geographical regions, borrower industries and asset types.
FOR FURTHER INFORMATION PLEASE CONTACT:
+61 2 8650 4047
nonbank Yearbook 2022
KangaNews's seventh annual guide to the business and funding trends in Australia's nonbank financial-institution sector.