Bluestone raises additional €48m in latest security issuance

Transaction involves listed securities backed by 2,479 loans, says car finance company

Bluestone has been operating in the Irish market since 2011. File photograph: PA

Bluestone has been operating in the Irish market since 2011. File photograph: PA

 

Bluestone Motor Finance has raised an additional €48 million in Ireland through another asset-backed security issue.

The car finance company said the latest transaction involves the issuance of listed securities backed by 2,479 loan agreements originated by Bluestone during 2019 and was secured on a mix of new and used motor vehicles and light commercial vehicles.

Bluestone has been operating in the Irish market since 2011, when it bought a €350 million asset finance portfolio from Bank of Scotland. It has raised more than €200 million in six asset-backed security issues.

The completion of this securitisation brings the total securitisation volume under the programme to €212 million, it said. The bonds were placed with institutional credit funds in the UK and were priced inside Bluestone’s previous Topaz issuance, it said.

“We have seen sustained growth in demand over the last 12 months with volumes increasing 20 per cent year on year,” said Bluestone managing director Donal Murphy.

“Overall, the car sales market in Ireland remains strong due to rising disposable incomes. The dip in new car sales is being balanced by the substitution impact of increased second-hand car sales,” he said.