Plenti sets up $100m green warehouse facility
Plenti has established a second warehouse funding facility worth $100 million to support growth and drive scale in renewable energy and personal loan originations.
The new facility will support the growth of Plenti’s lending activities while Plenti expects that the warehouse facility would reduce the cost of funds by around 300 bps on originations funded from the new facility.
The announcement has followed the lender flagging the move in its half-year results for the six months ended 30 September 2020. It had said that it had begun discussions during the half with banks and mezzanine funders about a second warehouse facility to fund renewable energy and personal loans.
The non-bank lender said that it expects the majority of new renewable energy and personal loan originations to be funded by the new facility, while its marketplace platforms continue to act as sources of capital and funding diversification.
The initial facility size of $100 million has been set to provide an appropriate balance between funding capacity and cost. As the loan portfolio increases in scale, Plenti expects the facility to be upsized, subject to funder approval, it said.
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Source: Plenti sets up $100m green warehouse facility – Mortgage Business
