MotoNovo Finance has appointed portfolio
management firm HML as back-up servicer for the securitisation of a
£314m portfolio of hire purchase car loans.
The Turbo Finance 2 Plc Portfolio
securitisation was successfully launched by the FirstRand Bank
subsidiary at the end of last month and HML’s participation will
provide additional security for investors.
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HML, a subsidiary of Skipton Building Society
that specialises in mortgage portfolios, announced its intention to
enter the motor finance market
late last year.
The company’s commercial director Ian
Cornelius said HML’s experience as a servicer and its 1,300-strong
workforce, allows it to absorb additional workloads at short
notice, making it a natural choice for back-up servicing.
“Instalment credit and motor finance are two
markets we’re looking to grow our presence in after primarily
operating in the mortgage space, so we’re delighted to be working
with MotoNovo Finance,” he added.
The MotoNovo securitisation follows the £246m
triple-A rated tranche securitised
in February 2011 through the Turbo Finance special purpose
vehicle.
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By GlobalDataThis latest securitisation was given triple-A
rating from Moody’s and Fitch for a £255m class A tranche and an
A1/A rating for a £38m B tranche. The A tranche was nearly twice
oversubscribed and priced at 140 basis points over one month
Libor.
FirstRand Bank decided not to sell the £38m
class B notes, although it may offer them at a later date,
according to a report from capital markets website
EuroWeek.
MotoNovo chief financial officer David James
said: “This second successful securitisation was an important
strategic move and has released significant capital and funding
capacity for the business to continue to flourish.
“Having HML on board as back-up servicer
helped us appeal to a broad range of investors and get the deal
over the line.”
April’s Motor Finance magazine
features a full analysis of the MotoNovo securitisation including
an interview with HML’s commercial manager Graham Donald
