MotoNovo Finance, most recent entrant into the UK point-of-sale motorcycle funding provision market, has been given an additional boost with the successful conclusion of its latest securitisation programme.
Securitisation involves bundling together batches of consumer loans into what are known as asset-backed securities which can then be sold on to investors, thereby releasing capital back to the POS finance provider for further lending. Over the past two years MotoNovo says it has raised securitisation transactions totalling £1bn and that, encouragingly, the quality of the securities in this latest offer led to strong City interest with very keen pricing and a wide range of investors. The tender was, in fact, three-times oversubscribed.
“We are delighted by the response from the City to our Turbo 3 securitisation programme,” says MotoNovo chief financial officer David James. “It is pleasing that the MotoNovo track record of growth and quality was so well received by the market. In the end well over 20 investors took part in the sale. We now expect this to be an annual event and view securitisation as an ideal way to diversify the funding required to underpin our ambitious plans for further growth.”