Independent non-bank lender Metro Finance has broken new ground in the Australian securitisation market, issuing its largest-ever auto and equipment asset-backed securities (ABS) transaction at $1 billion.
The record-high issuance follows significant global market disruption caused by United States tariff changes but signals renewed investor confidence, particularly from offshore participants. Initially launched at $500 million, the deal was upsized to $750 million and later extended to $1 billion, reflecting overwhelming investor interest in Metro’s asset finance-backed securities.
The latest transaction saw over 30 investor accounts participate, including 12 first-time buyers in Metro’s ABS program.
As with its previous October 2024 issuance, the lender attracted strong international appetite, with 82% of participation coming from offshore markets, spanning the UK, Europe, Japan, Hong Kong, and the U.S.
All note tranches were oversubscribed, reinforcing Metro’s position as a preferred investment choice for institutional buyers looking to diversify into high-performing ABS assets.
Metro Finance CEO David Albest highlighted the business' resilience and strategic execution, noting that investor confidence has remained strong despite broader market volatility.
"The continued market interest we’re experiencing with each transaction shows that Metro is well on track to exceed its growth targets," Albest stated.
“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.”
The lender, which settles A$200 million in loans monthly, now serves more than 90,000 customers through a national network of 4,000 brokers and salary packagers, reinforcing its position as a leading non-bank lender in Australia’s asset finance market.
Expanding its product offering, Metro has doubled borrowing capacity for commercial customers, increasing single asset deals to $1 million, with a total loan exposure limit of $2 million — a significant leap from its previous $500,000 cap. This move aligns with broader industry trends where non-bank lenders are adapting to meet growing commercial finance needs, particularly in sectors requiring larger capital commitments.
Metro’s upward trajectory has been further bolstered by innovation in sustainable finance, with its MetroEco product enabling small and medium-sized businesses to invest in electric vehicles, solar energy, and environmentally friendly farming equipment.
As global markets increasingly favour green investment opportunities, Metro’s strategic focus on sustainability positions it for long-term growth while reinforcing its commitment to tailored, customer-led financial solutions.
