Accessing the ABSF
Standing invitation to submit ABSF investment proposals
1 April 2022
The first round of ABSF investments is complete and the results are available.
The AOFM has announced the final investment of the second investment round of the Australian Business Securitisation Fund (ABSF).
The AOFM again invites market participants to submit proposals to be considered for investment by the ABSF. There is no longer a deadline for receiving proposals but there are restrictions on the frequency of submission. More information and guidance on the format of investment proposals are provided below.
Market participants are encouraged to arrange a time to seek feedback from the AOFM on the preliminary proposal prior to making a submission. Requests for a meeting should be submitted in writing to absf@aofm.gov.au.
Proposal format
Proposals should include the following:
- A pitch book or standard investor information pack, including background material on the proponent’s organisation, its loan portfolio, and in particular the detailed performance information for loans that are included in the transaction proposed for investment by the ABSF.
- A detailed draft Term Sheet which sets out the terms and structure of the transaction that is proposed for investment by the ABSF. Term Sheets should include details of portfolio parameters and asset eligibility criteria of underlying loans. Market participants are encouraged to thoroughly review requirements as expressed in the ABSF legislation and supporting instruments, and specifically investment decision-making criteria in the Australian Business Securitisation Fund Investment Mandate Directions 2019. Proposals may include alternative structures or ranges around transaction parameters for the AOFM’s consideration.
- A statement of claims against the ABSF investment principles. This should be focused, succinct and limited to no more than one page per principle. Where principles have already been fully addressed in the background material provided in (1), it is acceptable to simply refer to the relevant page number or section.
- [Deleted, AOFM no longer requires].
- An undertaking to collect data in accordance with the SME data template published by the ASF, which can be found here, and a short statement as to the proponent’s ability and estimated cost to implement the template.
At the AOFM’s discretion, de-identified questions and answers may be published on this webpage for the benefit of clarifying instructions for all proponents. Further details may be made available via our email subscription service.
Proposals may be submitted by the issuer by email to absf@aofm.gov.au. Proposals are to be submitted no more frequently than one per six months per issuer, proposals received within six months of a final determination on a prior proposal for the same issuer will not be considered.
Expected timeframe
Decision timing will be a function of the number and complexity of proposals received. The AOFM will notify proponents individually of the outcome of their proposal and report on successful investment proposals on its website.
