Carro, a leading AI-enabled online automotive marketplace in Asia Pacific, has launched its inaugural S$450m asset-backed securitisation (ABS) warehouse facility. This facility, backed by Singapore automotive loan receivables, aims to optimise funding and diversify Carro’s long-term capital sources.
The ABS warehouse facility is structured as a bankruptcy-remote special purpose vehicle (SPV), designed to purchase and securitise automotive loan receivables originated by Genie Financial Services, a subsidiary of Carro. This innovative approach is supported by Singapore’s unique Certificate of Entitlement framework, which underpins the new automotive asset class.
Aaron Tan, Co-Founder and CEO of Carro, stated, “Being a pioneer of the first-ever Singapore automotive loan receivables ABS is a testament to the strength of our AI-enabled platform, data infrastructure, and underwriting capabilities. By turning automotive loan receivables into an institutional-grade asset class, we are setting a new standard for automotive financing in Southeast Asia.”
The facility employs a multi-funder structure to enhance bank liquidity and maintain tax efficiency, allowing lenders to participate via capital markets notes or direct bank loans on a pari-passu basis within the same Monetary Authority of Singapore (MAS)-approved SPV. This transaction not only optimises funding but also establishes a new asset class for hire purchase securitisation.
Carro’s strategic move is expected to provide the financial flexibility and capital depth necessary to accelerate its growth across Southeast Asia, delivering sustainable value to its stakeholders.
