Metro Finance launches ABS deal

Tuesday, 30 June 2020

On 30 June, Metro Finance launched a capped A$300 million (US$205.5 million) auto and equipment asset-backed securities (ABS) transaction, Metro Finance 2020-1 Trust. The forthcoming deal is expected to price on or before 2 July, according to arranger National Australia Bank, which is also joint lead manager with Deutsche Bank.

Metro Finance 2020-1 Trust

Tranche	Indicative volume (A$m)	Expected ratings (M)	Weighted-average life (no. of years)	Initial credit enhancement (per cent)	Indicative price guidance (bp/1m BBSW)
A-S	109	Aaa	0.7	17.6	105-110 area
A-L	138.2	Aaa	2.9	17.6	170-175 area
B	18.6	Aa2	3.1	11.4	275-280 area
C	11.1	A2	3.1	7.7	340-350 area
D	5.1	Baa2	3.1	6	440-450 area
E	9.3	Ba2	3.1	2.9	ND
GA	4.95	NR	3.1	N/A	ND
GB	3.75	NR	3.1	N/A	ND

Source: National Australia Bank 30 June 2020