The Australian Office of Financial Management said late last week it will invest $250 million in Judo Bank, as part of the first round of funding released by the Treasurer’s Australian Business Securitisation Fund.
The lender will also receive a further $250 million into its warehouse facility under the government’s recently launched $15 billion Structured Finance Support Fund.
Confirming the substantial capital injection, Judo Bank’s co-founder and co-CEO, David Hornery, said: “At a time when the availability of credit has never been more important to tens of thousands of Australian SMEs, Judo is delighted to be able to announce such a substantial investment by the AOFM.
“The investments by the ABSF and the SFSF, which have been set up by the federal government to provide funding to SME lenders, and in turn to the SME community, are particularly timely.
“They will have a direct and positive impact on small and medium-sized enterprises nationally.”
The AOFM opened applications to the Treasurer’s Australian Business Securitisation Fund in December, but has now confirmed that all applicant lenders will be considered for a further capital injection through the newly launched $15 billion fund.
“Shortlisted proponents from the first round of ABSF investments are advised that their proposals will be automatically considered for investment by the SFSF,” the AOFM said in a statement.
However, if they wish to refresh their proposal and/or provide supplementary information, they have been instructed to do so after reviewing all material on the SFSF webpage.
The AOFM confirmed it had intended to announce a call for a second round of ABSF proposals prior to 1 July 2020. However, it now intends to make an assessment of market conditions in early July 2020 before proceeding.
Challenger Investment Partners and Herbert Smith Freehills acted as advisers to the AOFM on the Judo Bank warehouse transaction. Société Générale, Sydney Branch, has acted as structurer and arranger of the transaction.