Blue Motor Finance (Blue), the leading financing company for used cars in the UK, has successfully completed a syndication of part of its existing £300 million forward flow transaction to Standard Chartered Bank (Standard Chartered) and funds managed by Schroders Capital. This is the first transaction Blue has undertaken with Standard Chartered and Schroders Capital managed funds and continues Blue’s desire to both diversify and extend partnerships across its funding platform. It demonstrates continued confidence in Blue’s platform and business model from a broad range of blue chip funders and investors.
The transaction highlights Blue’s continuing commitment to developing its funding platform through longer term relationships with a broad panel of financing partners. Blue’s relationship focused funding approach has enabled it to lend in excess of £1.7bn in loans, supporting over 160,000 customers, and is underpinned by long term consistency and prudency in managing credit risk and delivery of diversified loan portfolios with relatively low average loan sizes, short term lengths, good security and predictable low default rates.
Tiku Patel, CEO of Blue Motor Finance commented: “We’re delighted that both Standard Chartered and Schroders Capital have come on-board through this transaction to partner with Blue. We greatly value this opportunity to build relationships with two blue chip counterparts and we look forward to further developing these relationships for the longer term, as we move forward. Blue is growing strongly and, partnering with Standard Chartered and Schroders Capital shows continuing confidence in our business model, our credentials for carefully managing credit risk, and our ability to deliver continued predictable performance.”
Jonathan Noonan, Head of Asset Backed Solutions Europe & Americas at Standard Chartered Bank, added: “Partnering with Blue marks a new, exciting step for us in the growth of our securitisation franchise. The senior facility enables us to invest in an appealing asset class by providing a warehouse to an established securitisation sponsor who is offering a great product to their end consumers. In addition, our venture with Blue is the start of an important new relationship for Standard Chartered, and we look forward to the many possibilities it will offer in the coming years.”
Michelle Russell-Dowe, Global Head of Securitized Product & Asset-Based Finance at Schroders Capital, noted:
“Where we have a wide remit in terms of opportunity across public and private space, the capital we are providing to the Blue warehouse facility is an excellent example of an opportunity that affords the security of a well underpinned asset, a solid sponsor, and an attractive structure.”
Note to editors:
About Blue Motor Finance:
provides loans to consumers for used cars through dealers. Remarkable growth has led to Blue being ranked on the Financial Times’ 1,000 Fastest Growing Companies in Europe (FT1000) for 3 consecutive years, topping the list in 2019. Since start up in 2015, Blue has lent more than £1.7bn to more than 160,000 customers.
Blue provides its introducers and customers with outstanding service based on technological innovation and the use of data and analytics. Blue is one of the most flexible and advanced direct lenders in the market. It offers loans to a very broad range of customers, fast decisions and great convenience.
About Standard Chartered:
Standard Chartered are a leading international banking group, with a presence in 59 of the world’s most dynamic markets and serving clients in a further 85. Their purpose is to drive commerce and prosperity through their unique diversity, and their heritage and values are expressed in their brand promise, here for good.
Standard Chartered PLC is listed on the London and Hong Kong Stock Exchanges.
About Schroders Capital:
Schroders Capital provides investors with access to a broad range of private asset investment opportunities, portfolio building blocks and customised private asset strategies. Its team focuses on delivering best-in-class, risk-adjusted returns and executing investments through a combination of direct investment capabilities and broader solutions in all private market asset classes, through comingled funds and customised private asset mandates.
The team aims to achieve sustainable returns through a rigorous approach and in alignment with a culture characterised by performance, collaboration and integrity.
With $70 billion* assets under management, Schroders Capital offers a diversified range of investment strategies, including real estate, private equity, secondaries, venture capital, infrastructure, securitised products and asset-based finance, private debt, insurance-linked securities and BlueOrchard (Impact Specialists).
*Assets under management as at 30 June 2021 (including non-fee earning dry powder and in-house cross holdings)