Bluestone Asset Finance raises €25m for lending

Bluestone Asset Finance (Ireland) Ltd has raised €25 million through a securitisation of some of its motor and commercial loans here, which it plans to use to support new lending.

The refinancing is via a vehicle called Topaz Asset Finance 2016-1. It comprises a portfolio made up of 2,075 loan agreements originated by Bluestone since late 2014 and secured on a mix of new and used motor vehicles and commercial asset finance equipment.

Donal Murphy, Bluestone Ireland's managing director, said the transaction was a "strong endorsement" of its specialist lending platform.

“Since 2014, we have gained fantastic support from our 450 motor dealer partners and we intend to drive further volume growth through a focus on service to these dealers, innovative technology and an underwriting philosophy that ensures we take time to understand each applicant’s individual circumstances,” he said.

“We are also increasing our focus on lending to SMEs who currently find it difficult to obtain finance due to a lack of credit history or employment status.”

Bluestone offers hire purchase and lease finance solutions to customers. Its UK parent specialises in loan origination, consumer loan purchase and debt servicing.

Its shareholders include LDC, a wholly-owned subsidiary of Lloyds Banking Group, Australia’s Macquarie Bank, and Bluestone’s management team.

The group established the Irish business in 2011 through the purchase of a €350 million asset finance portfolio from Bank of Scotland (Ireland). It later added two consumer and asset finance portfolios.

Initially focused on the loan servicing of these portfolios, Bluestone’s asset finance lending business launched in late 2014, distributing products through intermediaries.

The Topaz funding structure incorporates a listed Class A note placed with a single European credit manager and a Class X note retained by Bluestone for Capital Requirements Directive risk retention purposes.