ScotPac, Australia’s largest non-bank SME business lender, has successfully priced a $250 million asset-backed securitisation (ABS), marking its second such deal following its debut issue in February 2024.
Despite ongoing market volatility and high issuance volumes, the latest transaction was priced more tightly than the first – a signal of growing investor confidence in the company’s strategy and performance.
ScotPac treasurer Bridget Keating (pictured left) highlighted the transaction’s strategic significance in broadening the company’s financial platform.
“This latest securitisation further enhances the diversity and scale of our funding base and strengthens our capital efficiency,” Keating said. “We wish to acknowledge the continued support of our existing investors and welcome the new suite of investors to ScotPac’s funding programme.”
The ABS proceeds will support ScotPac’s efforts to expand funding for small and medium-sized enterprises across Australia.
The average projected six-month revenue growth across all SMEs nationally sits at 1.4%, with nearly 60% of businesses forecasting revenue increases – nearing the record high of 62.6% set in 2014. However, the data also highlights a record-wide confidence gap, with some firms anticipating up to 18% growth while others expect revenue to decline by as much as 30%.
ScotPac CEO Jon Sutton (pictured right) said the positive market reception validated the lender’s business model and reinforced its market position.
“We are delighted with the strong investor response to our second ABS issue which demonstrates the continued strength of the ScotPac brand and our business model.
“This transaction further strengthens our funding capacity to support our ongoing commitment to providing innovative funding solutions to our customers.”
Citi acted as arranger for the securitisation, while Citi and NAB served as joint lead managers. The strong investor participation is expected to further bolster ScotPac’s ability to offer alternative lending solutions at scale.
