FleetPartners Launches A$400m ABS with Pioneering Green Tranche for EV Leases

FleetPartners Advances ABS Market with Sustainable Innovation

FleetPartners Group has successfully priced its ninth Australian asset backed securitisation (ABS), raising A$400 million through the FP Turbo Series 2025-1 Trust. This latest issuance is backed by a diversified pool of Australian operating, finance, and novated finance lease receivables, underscoring FleetPartners’ continued leadership in the asset finance sector.

What sets this transaction apart is the inclusion of a green ABS tranche, a first for the Group, which exclusively finances leases for electric vehicles (EVs). This tranche has earned certification as a Climate Bond from the Climate Bonds Initiative, a globally recognised authority in green bond standards. This move aligns FleetPartners with growing investor appetite for environmentally responsible investment opportunities and reflects a broader shift towards sustainability in financial markets.

Investor Confidence and Market Reception

James Owens, FleetPartners’ Chief Financial Officer, highlighted the strong investor engagement and the successful attraction of new participants to the ABS program. The robust pricing outcome, with margins ranging from 1.00% to 3.65% over the one-month BBSW benchmark depending on tranche risk, signals deep market confidence in FleetPartners’ credit underwriting and residual value risk management capabilities.

The transaction’s structure includes multiple tranches rated by Moody’s, with the largest A1 tranche rated Aaa(sf) and priced at a 1.00% margin over BBSW. The green tranche, part of the A1-G class, also carries the highest rating and a competitive margin, reinforcing the market’s positive view on sustainable finance instruments.

Strategic Partnerships and Next Steps

Australia and New Zealand Banking Group, Commonwealth Bank of Australia, and Westpac Banking Corporation served as Joint Lead Managers, bringing significant institutional support to the deal. Settlement is scheduled for 15 July 2025, marking the final step before the ABS notes begin trading and contributing to FleetPartners’ funding base.

This issuance not only strengthens FleetPartners’ capital position but also signals the company’s commitment to integrating sustainability into its core financing activities. As the electric vehicle market expands, the green tranche could become a template for future ABS deals, potentially attracting a broader range of investors focused on environmental impact.