Finance solution provider, FlexiGroup Limited (ASX: FXL) announced the pricing of A$300m asset-backed securities (ABS). It is originated by Certegy Ezi-Pay Pty Ltd (“Certegy”), a wholly owned subsidiary of FlexiGroup to support the pool of Australian unsecured, retail, “no interest ever” payment plans.
The company has been executing securitizations of its Certegy receivables under the Flexi ABS programme since 2011. It has witnessed successful transactions in 2016, 2017, and 2018. Following such success, it has expanded the ‘green tranches’ of notes included in this transaction to include a third green tranche of notes – the Class C-G Notes. The introduction of an ‘A’ rated tranche of green notes represents a first for the Australian securitization market. The green tranches, backed by solar receivables, have been Climate Bond Certified by the Climate Bonds Standard Board based in London.
FlexiGroup CEO Rebecca James stated that the company has always followed an innovative approach to cater to funding requirements which are supported by the inclusion of a third green tranche of notes in this transaction. As seen by today’s pricing, there has been a good appetite amongst current and new investors to support green initiatives and industries. They feel proud to be a long-standing supporter of the solar industry in Australia. They have helped over 180,000 customers access clean and affordable energy, financing over A$1.75 Bn of solar panel sales. This transaction will help them to grow their receivables book through the launch of their new ‘Buy Now Pay Later’ product which is growing in demand on a daily basis.
The transaction was arranged by Commonwealth Bank of Australia and joint lead-managed by National Australia Bank and Commonwealth Bank of Australia. The transaction includes the following tranches of notes:
In another announcement, the company settles the placement of 20,113,947 shares to Tanarra Capital Pty Ltd and its affiliated funds (“Tanarra”) as announced on February 26, 2019. The company has also appointed John Wylie as a Director of the company.
About the company: FlexiGroup Limited is an ASX listed financial solutions provider to Retail customers, and businesses. Its product includes credit cards, Buy Now Pay Later products, and consumer and business leasing.
Now, let’s have a look at FlexiGroup Limited’s stock performance and the return it has posted over the past few months. At the time of writing (22 March 2019 AEST 02:49 PM), the stock is trading at a price of $1.375, up by 1.476% during the day’s trade with a market capitalization of ~$507.15 Mn. Its current PE multiple is at 7.25x and EPS was noted at 0.187 AUD. Its annual dividend yield was noted at 5.68%. The counter opened the day at $1.370 and reached the day’s high of $1.430 and touched a day’s low of $1.370 with a daily volume of more than 612,601. The stock has provided a YTD return of 0.37% & also posted returns of -31.91% & 18.86% over the past six months, and one-month period respectively. It had a 52-week high price of $2.340 and touched 52 weeks low of $0.975, with an average volume of around 988,227.
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