Blue Motor Finance – the leading financing company for used cars in the UK – has successfully completed a syndication of part of its existing £300m forward flow transaction to Standard Chartered Bank and funds managed by Schroders Capital.
This is the first transaction Blue has undertaken with Standard Chartered and Schroders Capital managed funds and continues its desire to both diversify and extend partnerships across its funding platform.
It demonstrates continued confidence in Blue’s platform and business model from a broad range of blue chip funders and investors.
The transaction also highlights Blue’s continuing commitment to developing its funding platform through longer-term relationships with a broad panel of financing partners.
Blue’s relationship-focused funding approach has enabled it to lend in excess of £1.7bn in loans, supporting more than 160,000 customers.
It is underpinned by long-term consistency and prudency in managing credit risk and delivery of diversified loan portfolios with relatively low average loan sizes, short-term lengths, good security and predictable low default rates.
Tiku Patel, CEO of Blue Motor Finance, commented: ‘We’re delighted that both Standard Chartered and Schroders Capital have come on board through this transaction to partner with Blue.
‘We greatly value this opportunity to build relationships with two blue chip counterparts and we look forward to further developing these relationships for the longer term, as we move forward.
‘Blue is growing strongly, and partnering with Standard Chartered and Schroders Capital shows continuing confidence in our business model, our credentials for carefully managing credit risk, and our ability to deliver continued predictable performance.’
Jonathan Noonan, head of asset-backed solutions Europe & Americas at Standard Chartered Bank, added: ‘Partnering with Blue marks a new, exciting step for us in the growth of our securitisation franchise.
‘The senior facility enables us to invest in an appealing asset class by providing a warehouse to an established securitisation sponsor who is offering a great product to their end consumers.
‘In addition, our venture with Blue is the start of an important new relationship for Standard Chartered, and we look forward to the many possibilities it will offer in the coming years.’
Michelle Russell-Dowe, global head of securitised product & asset-based finance at Schroders Capital, noted: ‘Where we have a wide remit in terms of opportunity across public and private space, the capital we are providing to the Blue warehouse facility is an excellent example of an opportunity that affords the security of a well-underpinned asset, a solid sponsor, and an attractive structure.’