With inflation easing and credit conditions stabilising, Metro Finance—an independent non-bank lender specialising in auto, equipment, and novated lease finance—has achieved a significant milestone with the issuance of a record $1 billion ABS deal, underscoring strong investor confidence in its asset quality and growth prospects.
The move not only surpasses the company’s previous $600 million issuance but also marks the first $1 billion ABS transaction in its history, setting a new benchmark in Australia’s non-bank lending sector.
“With this latest transaction Metro has doubled its original value at launch, which is a strong indication we have the right people, products, and processes in place to continue this exponential investment trend,” Metro Finance CEO David Albest (pictured) said.
Initially launched at $500 million, the transaction was quickly upsized to $750 million, and finally to $1 billion due to overwhelming investor demand.
According to Metro Finance, this appetite was largely driven by offshore participants.
Eighty-two per cent of the investment came from international accounts, spanning the UK, Europe, Japan, Hong Kong and the USA.
Over 30 institutional accounts took part in the transaction, with 12 joining Metro’s ABS program for the first time. All note tranches were oversubscribed.
“The continued market interest we’re experiencing with each transaction shows that the Metro business is well on track with its growth targets and despite prolonged market challenges, we are consistently able to offer a safe choice for investors,” Albest said.
This successful issuance follows significant disruption in global markets, particularly after the US introduced sweeping tariffs. Metro’s deal was the first to reopen the Australian securitisation market in the wake of that volatility, underscoring investor confidence in the non-bank lender’s model.
Metro Finance currently settles around $200 million in loans per month, or approximately $2 billion annually.
The lender services more than 90,000 customers, sourcing business through a national broker network of 4,000 introducers, including auto and equipment finance brokers and salary packagers.
“At a time when the market continues to experience a range of challenges from overseas and at home, the Metro team leads the way with its innovative, customer-led approach,” Albest said.
“We provide tailored products to suit both individual and commercial customers; which I have no doubt investors are noticing.”
Metro Finance recently introduced expanded commercial lending capacity, increasing its big ticket asset finance limit to $1 million per deal, with total exposure of up to $2 million. Previously, the thresholds stood at $500,000 and $1.5m, respectively—effectively doubling customer borrowing power.
In 2024, Metro Finance launched MetroEco, an Australian-first product offering targeted at helping SMEs invest in environmentally friendly assets, such as electric vehicles, solar panels, and sustainable agricultural equipment.
