Plenti prices renewable energy and personal loan ABS
We are pleased to announce the pricing of our second asset-backed securities transaction, totalling $280 million and covering renewable energy and personal loans receivables.
We've priced our second ABS transaction.
Plenti Group Limited (Plenti) announces the pricing of a $280 million asset-backed securities (ABS) transaction covering renewable energy and personal loan receivables (the Plenti PL Green ABS 2022-1).
Highlights
- $280 million ABS transaction priced
- $65 million of notes green-certified under the Climate Bonds Standard
- 76% of notes rated Aaa by Moody’s
- Equity contribution reduced to 2.5% of the underlying loan receivables
The pricing achieved on the transaction substantially reduces Plenti’s funding costs. In addition, the reduced equity requirement relative to Plenti’s renewable energy and personal loan warehouse facility releases capital back to the business to fund further loan book growth.
As with Plenti's inaugural automotive ABS issue in 2021, the credit support required by Moody’s at each rating level reflects the exceptional credit performance and credit profile of the underlying renewable energy and personal loans.
| Note class | Amount | Credit support2 | Moody's rating | Margin over 1 month BBSW |
| A1 | $147.8m | 24.0% | Aaa | 120bps |
| A1-G | $65.0m | 24.0% | Aaa | 120bps |
| B | $21.7m | 15.25% | Aa2 | 175bps |
| C | $13.3m | 11.50% | A2 | 200bps |
| D | $7.0m | 9.0% | Baa2 | 255bps |
| E | $8.4m | 6.0% | Ba1 | 455bps |
| F | $9.8m | 2.5% | B2 | 675bps |
| G1 | $7.0m | n/a | n/a | n/a |
1. The Class G notes will be retained by Plenti.
2. Credit support refers to the proportion of total notes which are subordinated to the relevant class of notes.
ABS transaction structure
Commenting on the transaction, Miles Drury, Plenti’s Chief Financial Officer, said:
“The successful completion of Plenti’s second ABS transaction – our first backed by renewable energy and personal loans – will further diversify and deepen our funding structures while reducing our cost of funding, two key strategic objectives for Plenti.
“Despite a backdrop of geopolitical instability and market volatility, we were pleased with investor support for the transaction which demonstrates their confidence in the Plenti business and our ongoing growth opportunity.
“The inclusion of a substantial green-certified tranche in the transaction supports Plenti’s ambition of helping Australian households transition to renewable energy and improve their carbon footprint. ”
The transaction is expected to settle on or around 10 March 2022, subject to satisfaction of customary conditions precedent.
National Australia Bank acted as arranger and National Australia Bank and Deutsche Bank acted as joint-lead managers of the transaction.
