Tuesday 28th June 2022 |
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HARMONEY SECURES ADDITIONAL NZ$215M FACILITY TO SUPPORT FURTHER BOOK GROWTH
Key highlights:
• Establishment of an additional NZ$215 million warehouse facility, supporting New Zealand growth
• This facility is led by one of Australia’s “big four” banks - Harmoney is funded by three of Australia’s “big four” banks across Australia and New Zealand
• With over 90% of the Group loan book now funded by warehouse facilities, Harmoney has a highly diversified funding panel, which provides for a cost-effective and capital efficient funding base to support its continued growth
Harmoney Corp Limited (ASX/NZX: HMY ; “Harmoney” or “the Company”) is pleased to announce that it has entered into a new NZ$215 million warehouse facility with one of Australia’s largest banks. This new warehouse facility will provide further funding capacity supporting New Zealand’s loan book growth, and complements the Company’s balance sheet strength.
As announced on 27 April 2022, Harmoney’s loan book accelerated to NZ$627 million, a 13% increase quarter on quarter (QoQ). The establishment of this new $215m facility gives Harmoney significant warehouse capacity, deferring a New Zealand asset-backed securitisation that was being considered in recent months.
Commenting on the new warehouse facility, CEO & Managing Director David Stevens said:
“We have achieved yet another milestone for Harmoney. Back in 2019, we started the process of transitioning away from peer-to-peer funding and now within a short span of 3 years, we have accelerated this to be over 90% warehouse-funded. This new warehouse facility further unlocks our loan origination capacity, it provides a lower cost of funding to optimise growth, and further diversifies our funding panel. Our ability to secure this additional New Zealand warehouse facility, from the same “big four” bank that provided the new Australian warehouse in February 2022, demonstrates its confidence in Harmoney’s 100% consumer-direct business model and our continued ability to execute on our growth plans. Our total warehouse facilities are now over $950m, of which over $330m remains undrawn.”
Update to Neil Roberts’ employment agreement
As noted in section 6.3.3.3 of the Company’s Prospectus, Neil Roberts’ employment contract with the Group includes entitlements to compensation in the event of his termination (other than for serious misconduct or breach) or redundancy (“Compensation”). Mr Roberts’ employment contract has been updated to the Group’s current template for consistency with all other Group senior executives. In the process of standardising Mr Roberts’ terms of employment, the Group has agreed to satisfy its obligation and pay Mr Roberts’ Compensation. This amount will be repayable within 6 months if Mr Roberts’ employment is terminated for serious misconduct or breach within 6 months. Going forward, Mr Roberts will have no entitlement to compensation in the event of his termination or redundancy.
This release was authorised by the Board of Harmoney Corp Limited.
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