Dublin-based Bluestone Motor Finance has completed its seventh asset backed funding transaction, raising €43m of motor finance receivables.

The completion, which brings total securitisation volume under the program to €255m, is an indication of Bluestone’s progress over the last year.

The transaction, which took place via the Topaz 2020-1 DAC, involved the distribution of listed securities backed by 3,575 loan agreements, originated by Bluestone from August 2019 to October 2020. The firm’s inaugural issuance was in April 2016.

Secured on a mix of new and used motor vehicles, alongside light commercial vehicles, bonds were placed with institutional credit funds in the UK and the republic of Ireland.

Donal Murphy, managing director of Bluestone Motor Finance, linked the success of the latest securitisation to the firms “distinctive approach to dealer originated finance, which has continued to see Bluestone make headway in what has been a very challenging automotive market for much of the last twelve months”.

Murphy continued: “Our highly digital and resilient business model has served our business, dealer partners and end customers extremely well, demonstrating Bluestone’s ability to be efficient, effective and agile.”

Bluestone’s business model centres on an underwriting approach that considers each customer on a case by case basis, as opposed to a reliance on credit scoring. This enables the assistance of customers who were excluded from obtaining traditional bank finance, but who demonstrate a clear ability to repay loans.

Such an approach will become increasingly relevant in the wake of Covid-19, Murphy believes. “The events of 2020 will continue to impact the way people live and work and inevitably for some, their finances.

“We are confident that these changes will create a greater demand for the specialist finance approach we have developed so successfully. In the aftermath of Covid-19, at Bluestone, we believe that the demand for our ‘can do’ ethos to car finance will increase as people look to bounce-back. The outlook for car retailing is challenging, but we are looking ahead with growth very much in mind.”

The transaction was arranged by Macquarie Bank’s London based Fixed Income and Currencies team.