ABSF Update - Commitment Changes

The AOFM, through the ABSF, aims to enhance the development of the securitisation market’s capacity to support both private and public transactions backed by loans to SMEs. To date the ABSF has made investments in four private warehouse facilities and one public term transaction.

The AOFM advises that the ABSF’s inaugural investment, in a private warehouse facility sponsored by Judo Bank, has been fully refinanced by third party senior financiers.

Since entering this investment in 2020, the AOFM has observed progress in the securitisation market’s capacity to finance a greater diversity of SME lending, particularly in some segments of the secured finance space. There have been several new entrants into the public ABS market that have securitised portfolios with a focus on SME lending as collateral, including Judo Bank. The AOFM notes other developments, including the publication of the Australian Securitisation Forum’s SME data reporting template and its adoption by a number of market participants. Incentivising the establishment of a track record for new kinds of SME lending, in a standardised format, remains a key part of the AOFM’s strategy to support the development of the securitisation market.

The AOFM would like to take this opportunity to thank its advisors, the transaction structurer, co-investors and Judo Bank.

The capital returned to the ABSF can be recycled into new investments, and the AOFM continues to receive and assess ABSF investment proposals. The AOFM reports on its investment activity on the AOFM website under ABSF Communications.

The AOFM also advises that a commitment of $225 million in a private warehouse facility sponsored by Dynamoney has been given in-principle approval by the ABSF delegate, subject to the satisfactory completion of commercial negotiations and documentation processes.

Instructions on making a submission for ABSF investment can be found on the AOFM website under Access the ABSF. Proponents are encouraged to contact the AOFM at absf@aofm.gov.au to arrange a call to discuss a proposal before submitting it, for both private and public transactions.