zipMoney Limited (ASX:ZML) (“zipMoney”) offers point-of-sale credit and digital payment services to consumers and merchants. It is targeting a $100bn market opportunity across the retail, heath, education and travel sectors. zipMoney has developed a scalable technology platform that is disrupting the consumer finance space with a fully digital offering. Its success to date is evidenced by the origination of over $200m of receivables from more than 3,000 merchants and 500,000 financial users.
To fund its ongoing growth, zipMoney established a $260m asset backed securitisation warehouse program, which provides the option to refinance the facility through the rated securitisation market. To complete the program FIIG Securities arranged $40m of Class B mezzanine notes to complement $200m in senior bank funding and $20m in junior notes and equity. The program is the next step in establishing a diversified funding program for zipMoney that provides headroom for growth and lowers its average cost of funds.
zipMoney is the latest non-bank financial services business to utilise the bond market to broaden its capital base. FIIG has provided a range of funding solutions to the sector, including:
- Traditional securitisation structures;
- Corporate style senior facilities, including acquisition of loan books;
- Funding diversification including refinancing and/or expansion of existing funding lines; and
- Optimising capital structure through a range of terms including terms of greater than 4 years, fixed or floating rate, secured and unsecured.