• $200M term securitisation with $140M in external debt funding
• Transaction funded by MA Financial Group and leading financial services group
• Around $2M in pre-tax interest cost savings over 3 years
• Increases Money3's funding capacity by $200M

Solvar Limited (ASX: 'SVR' or 'Solvar' or 'the Group'), the leading provider of automotive finance, has announced the execution of an Asset Backed Securitisation ('ABS') for ~$200.0 million. This deal is Solvar's first term securitisation for the Money3 business and was competitively priced, resulting in approximately 1.0% p.a. improvement in funding margins. The ABS transaction provides additional funding capacity by transferring approximately $200 million of Money3's existing assets to a new securitisation trust. The trust will be funded by ~$60 million of existing funding from Solvar (predominantly transferred from the existing warehouse) and ~$140.0 million of new funding at a lower cost. This deal demonstrates Solvar's capital management strategy of building a scalable and sustainable funding model to support their future growth strategy. The transaction was funded by private credit funds managed by global alternative asset manager MA Financial Group and supported by a leading financial services group. The deal is expected to result in around $2.0 million in pre-tax interest cost savings over three years and increases Money3's funding capacity by $200.0 million to the existing $510.0 million wholesale funding limits.

The transaction is expected to result in around $2.0 million in pre-tax interest cost savings over three years.

The transaction demonstrates Solvar's strategy to access the ABS market and build a scalable and sustainable funding model to support their future growth strategy. The company remains confident in its ability to grow the loan book while capitalising on the ability to access the ABS market for future deals.