Prospa announces pricing of its third public ABS issuance backed by SME loans

ASX-listed Prospa have announced the pricing of its third public asset-backed securities (ABS) offering of AUD $200 million issued to wholesale investors, supported by a pool of Australian small business loans and line of credit facilities.

The PROSPArous Trust 2024-1 is the third of its kind in Australia, following Prospa’s two previous transactions.

Moody’s is expected to lift their credit rating cap from Aa3 to Aa2, demonstrating Prospa’s continuing role as an innovator in Australia’s securitisation market.

The transaction was fully subscribed for Class A-F Notes, with demand from large real money local investors. It takes place as the Australian SME market continues to demonstrate resilience in the current environment.

Ross Aucutt, Chief Financial Officer of Prospa, said, “We’re happy to have priced our third ABS in four years; establishing us as a regular and reliable issuer. We are grateful for the strong engagement from investors, and this will allow us to support small business owners with working capital and investment headroom. We were extremely pleased at the strong support from new and existing investors in the transaction.”

The transaction is expected to settle on 11 April 2024, subject to the satisfaction of customary conditions precedent.