Singapore-based Carro, an online automotive marketplace and auto financing company, said on October 22 it had set up a S$450 million (US$352 million) asset-backed securitization warehouse facility backed by Singapore auto loan receivables to diversify its funding sources.

The facility uses a bankruptcy-remote special purpose vehicle under a Monetary Authority of Singapore-approved regime to buy and securitize receivables from Genie Financial Services, Carro’s wholly owned subsidiary.

Such structures help isolate risk from the originator’s insolvency.

Carro said this was Singapore’s first automotive loan receivables securitization.

The deal is backed by vehicle-secured hire purchase receivables. Mizuho arranged the transaction, while Mizuho, HSBC, and JP Morgan provided loans and subscribed for notes.

Carro operates in Southeast Asia’s used-car market and secured a US$56 million multicurrency loan from HSBC for Genie in June 2024.

Singapore motor vehicle loans are subject to Monetary Authority of Singapore limits on loan-to-value ratios and tenures.

🔗 Source: Carro

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