Lender acquires loan portfolio from major bank

A non-major lender has announced the acquisition of an $8.2 billion loan portfolio from one of the big four banks



Macquarie Bank has announced it will acquire motor vehicle finance dealer, Esanda Dealer Finance from ANZ.

The Esanda portfolio comprises retail and wholesale dealer finance on motor vehicles across Australia and will become part of Macquarie Leasing, the automotive and equipment finance division of Macquarie.

As at 31 August 2015, Esanda had net lending assets with a book value of $7.8 billion, comprising $6.2 billion of retail receivables and $1.6 billion of bailment and other finance offered to motor vehicle dealers. According to a statement from Macquarie, this acquisition will increase the total motor vehicle finance portfolio managed by Macquarie Leasing by $9 billion, to approximately $17 billion. 

Macquarie Group CEO Nicholas Moore says the acquisition of Esanda reflect Macquarie’s commitment to the motor vehicle finance industry. 

“This acquisition will represent a continuation of Macquarie’s growth in annuity-style businesses. Macquarie has been a longstanding supporter of the motor vehicle industry and we look forward to continuing to support the Esanda dealers and their retail customers. 

“The portfolio is in a market which has significant expertise and has successfully integrated similar acquisitions, such as GMAC and Ford portfolios.”

ANZ CEO Australia Mark Whelan said the sale of the Esanda Dealer Finance portfolio “reflects a continued focus by ANZ on core business and further strengthens our capital position.”

Macquarie will purchase Esanda for approximately $8.2 billion, funding the acquisition from existing funding sources combined with third-party financing arrangements and a capital raising, announced yesterday. The final close for the acquisition is expected to occur by 31 October 2015.

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