FleetPartners Group has successfully priced a A$400 million Australian asset-backed securitisation, including a green tranche funding electric vehicle leases, while issuing a correction to a previous announcement.
- A$400 million ABS priced under FP Turbo Series 2025-1 Trust
- Green ABS tranche exclusively funds electric vehicle leases
- Correction issued for A1-G class amount in initial announcement
- Strong investor demand and new participants in ABS programme
- Settlement expected on 15 July 2025 with major Australian banks as lead managers
FleetPartners’ Ninth ABS Issuance
FleetPartners Group Limited has successfully priced its ninth Australian asset-backed securitisation (ABS), the FP Turbo Series 2025-1 Trust, raising A$400 million. This transaction is backed by a diversified pool of operating, finance, and novated lease receivables originated by the company, reflecting nearly four decades of expertise in credit underwriting and residual value risk management.
Green Tranche Highlights Sustainability Commitment
Notably, the ABS includes a green tranche certified as a “Climate Bond” by the Climate Bonds Initiative, a globally recognised authority on green bond certification. This tranche exclusively finances leases for electric vehicles, underscoring FleetPartners’ commitment to sustainability and aligning with growing investor demand for responsible investment opportunities. The green tranche adheres to the International Capital Market Association’s Green Bond Principles, marking a significant step in integrating environmental considerations into the company’s funding strategy.
Correction to Previous Announcement
Following the initial announcement on 8 July 2025, FleetPartners issued a correction regarding the A1-G class amount, which was misstated. The corrected figures show the A1-G tranche at A$80 million, ensuring transparency and accuracy for investors and market participants. Such corrections, while not uncommon in complex securitisation deals, highlight the importance of precise disclosure in maintaining market confidence.
Market Reception and Future Outlook
James Owens, FleetPartners’ Chief Financial Officer, noted the strong investor engagement and the successful inclusion of new participants in the ABS programme. The pricing margins remain competitive, reflecting robust confidence in FleetPartners’ credit quality and operational strengths. The transaction was led by major Australian banks, ANZ, Commonwealth Bank, and Westpac, with settlement scheduled for 15 July 2025.
As the market increasingly values sustainability-linked finance, FleetPartners’ green tranche could set a precedent for future ABS issuances in the sector. Investors will be watching closely to assess how this influences funding costs and investor base diversification going forward.
Bottom Line?
FleetPartners’ green ABS tranche signals a strategic pivot towards sustainable finance, but the impact on future funding dynamics remains to be seen.
Questions in the middle?
- How will the corrected A1-G tranche amount affect investor allocations and pricing?
- What impact will the green tranche have on FleetPartners’ overall cost of capital?
- Will this ABS set a benchmark for more sustainability-linked securitisations in Australia?