FIIG - The Fixed Income Experts
Zip Pay & Zip Money - FIIG DCM

Warehouse Funding: unrated debt markets support securitisation and growth

Issuer Profile

Listed on the ASX (ASX: ZIP) since 2015, Zip Co Limited (“Zip”) is a leading player in the digital retail finance and payments industry. Zip offers both online and in-store point-of-sale retail finance and digital payment services to consumers of enterprise and SME merchants. Zip provides consumers with two types of revolving line of credit products with either full (Zip Pay) or initial (Zip Money) interest free terms, more commonly known as a ‘buy now, pay later’ solution for consumers.

The Zip Master Trust (“ZMT”) is a bankruptcy remote securitisation vehicle created in 2019 to fund Australian receivables originated by Zip. The Zip Master Trust – Series VFN No. 2 (“VFN2”) is a warehouse that sits within the ZMT. The ZMT is Zip’s primary source of funding receivables with current limits of ~$2.1bn across three rated term deals and two revolving Variable Funding Notes.

Issuer Need

Zip was seeking to diversify its sources of capital and introduce new mezzanine and junior notes into the VFN2 warehouse to optimise its capital efficiency and ensure access to capital to fund future growth.

FIIG Solution

Being already familiar with Zip having arranged the Class B Notes in the 2017-1 Trust, FIIG was able to work collaboratively with Zip to create a new capital structure within VFN2 that maximised senior bank funding. The additional capital from the mezz and junior Notes raised allows Zip to continue to invest in the growth of the Australian business.

Issuer Testimonial 

 Zip Co-founder and Global COO, Peter Gray said, “Zip is pleased to have completed our latest warehouse transaction which again validates the quality of our underwriting and receivables, and demonstrates the continued support of both senior and mezzanine investors.”

Talk to us
Daniel Jones Director, Debt Capital Markets

Daniel Jones
Head of Debt Capital Markets

+61 436 944 566

FIIG Debt Capital Markets

FIIG has a proven track record of opening the Australian bond markets, having raised over $3.3bn of predominantly unrated bond funding across almost 100 issues.

The Debt Capital Markets team arranges long term, flexible AUD bond financing for rated and unrated Australian and New Zealand corporates. The DCM team also provides debt advisory services focused on optimising capital structures and diversifying funding options.

If you would like to learn more about how FIIG can assist in the growth of your business...

  Contact Daniel Jones on
0436 944 566