Join our daily newsletter At The Bell to receive exclusive market insights
- New ASX lister Plenti (PLT) has secured a $100 million renewable energy and personal loan facility to support its lending portfolio
- The loan facility is funded by a major domestic bank and two domestic investors, both are unnamed in the announcement
- Plenti expects the majority of its new renewable energy and personal loan originations to be funded by the new facility
- Loans are expected to yield a funding cost-benefit of 3 per cent, which the company says will significantly enhancing loan unit economics
- The company anticipates making its first drawdown on the facility before the end of 2020
- PLT shares closed up slightly by 0.97 per cent, trading at $1.04 each
New ASX lister Plenti (PLT) has secured a $100 million renewable energy and personal loan facility to support its lending portfolio.
The loan facility is funded by a major domestic bank and two domestic investors, although both are unnamed in the announcement.
Warehouse loan facilities are a line of credit, typically issued by a major bank, that recoup funds through charges on subsequent lending transactions.
The unnamed domestic bank is the senior lender in this particular facility with mezzanine funding by two unnamed investors.
Plenti expects the majority of its new renewable energy and personal loan originations to be funded by the new facility.
Loans are expected to yield a funding cost-benefit of 3 per cent, which the company says will significantly enhancing loan unit economics. The warehouse facility has a minimum 5 per cent equity funding requirement.
Plenti Chief Executive and Founder, Daniel Foggo, says the facility marks another important milestone for the lender.
“As well as adding further impetus to our exceptional growth, it makes our business more resilient by materially improving the economics on new loans, while further diversifying our funding sources,” he commented.
Plenti debuted on the ASX in September this year following a $55 million initial public offering at $1.66 per share but slipped to $1.30 on its first day of trading.
PLT shares closed up slightly by 0.97 per cent, trading at $1.04 each.
