Bluestone News

Bluestone completes second €25 million securitisation of Irish auto finance portfolio

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Bluestone Asset Finance (Ireland) Limited is pleased to announce it has completed a €25 million capital markets financing of auto and equipment finance receivables, via the Topaz Asset Finance 2016-2 DAC, its second such securitisation in 2016. The portfolio is made up of 2,102 loan agreements originated by Bluestone during 2016 and secured on a mix of new and used motor vehicles and commercial asset equipment.

Donal Murphy, Bluestone Ireland’s Managing Director said: “This transaction is part of our ongoing programme to accelerate lending to customer segments that remain under-served by the pillar banks. Since 2015, we have provided over €50 million in finance through our network of over 450 motor dealer partners and equipment brokers with whom we focus on providing clear and responsive underwriting decisions.”

Bluestone provides auto finance to consumers with products tailored to suit customers who are self-employed, have little or no credit history or who experienced financial difficulties during the financial crisis but can now demonstrate a stable income. The company adopts a prudent underwriting philosophy that ensures it takes time to understand each applicant’s individual circumstances.

In October, Bluestone expanded its offering by launching a new finance product aimed at young businesses and self-employed contractors in the SME space who are seeking to purchase agriculture and / or construction equipment. Research conducted by Bluestone suggests there are in excess of 3,000 businesses that have been trading in Ireland for between 12-24 months.

Topaz is the capital markets issuance programme that has been established to provide high quality long-term funding solutions to Bluestone’s target market. Bluestone’s inaugural issuance, Topaz 2016-1 was completed in April 2016.

Peter McGuinness, Bluestone’s CEO Europe, said: “Ireland remains an important jurisdiction for us, and we are continuing to invest in sales, marketing and product development to broaden Bluestone’s offering. The issuance of Topaz 2016-2, which was supported by institutional funds who have previously invested with Bluestone in Ireland, underpins the growth plans we have for the business.”

The Topaz funding structure incorporates a listed Class A note placed with a single European credit manager, and a Class X note retained by Bluestone for Capital Requirements Directive (CRD) risk retention purposes. Macquarie Bank International Limited acted as Arranger and Lead Manager on the transaction. Macquarie also provide ongoing funding support to Bluestone’s lending operation in Ireland. Bluestone was advised by McCann Fitzgerald.