Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Second MTF medium term note issue oversubscribed

Second MTF medium term note issue oversubscribed


Motor Trade Finances Limited (MTF) has today issued $200m of medium term notes to institutional investors, in its second asset backed security issue.

The original offer of $150m was heavily oversubscribed, resulting in the offer increasing to $200m. A broad mix of offshore and domestic institutional investors are participating in the issue.

The medium term notes are issued by Trustees Executors Ltd, in its capacity as trustee of the MTF Valiant Trust 2014. The notes are backed by motor vehicle receivables originated by MTF dealers and franchises, who are all MTF shareholders, and have an aggregate expected term of up to four years.

Fitch Ratings has assigned its highest structured finance rating, AAA (sf), to $176.4m of medium term notes. A further $18.8m of notes rated from AA (sf) to B (sf) will be issued, with the balance of $4.8m of unrated notes held by MTF. The ratings assigned to the notes reflect the credit quality of MTF receivables, and the track record and industry experience of MTF.

Very little securitisation activity has appeared in New Zealand post the global financial crisis, with only four issues coming to market in recent years, one of which was the June 2012 issue of the MTF Zephyr Trust. The issue of all classes of rated notes to institutional investors is a further endorsement of the funding structure put in place in 2010 in response to the global financial crisis by MTF, its bankers and professional advisors.

Commonwealth Bank of Australia and Westpac New Zealand acted as joint arrangers and lead managers, assisting MTF to organise and place the notes with investors.

MTF is pleased with the strong investor support shown for the issue and welcomes the opportunity to broaden its investor base and provide MTF dealers and franchises with competitive, longer term funding.


ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: Official Cash Rate Unchanged At 1.75 Percent

Global economic growth has increased and become more broad-based. However, major challenges remain with on-going surplus capacity and extensive political uncertainty... More>>

Kaikōura Earthquake: Private Insurers Receive $1.8b Claims

Insurance Council Chief Executive Tim Grafton said most is for commercial loss at $1.36 billion, with residential claims amounting to over $460 million. “...We have a high level of confidence that most people will have received settlement offers by the end of this year." More>>

ALSO:

Forms And Data: New Proposals To Simplify Personal Income Tax

The Government is proposing to make tax simpler for individuals, with people whose only income is from a salary, wages or investments no longer being required to file tax returns to receive tax refunds or to calculate any additional tax. More>>