Judo Capital Markets Trust 2023-1: 29 September 2023
An SME securitisation from originator Judo Bank, that was established in 2016 as a specialist, pure play SME business bank. Headquartered in Melbourne, Judo received a full banking licence from APRA in April 2019 and has since expanded to have 18 locations across Australia with approximately 123 relationship bankers nationally. As of 30 June 2023, Judo has gross loans and advances of A$8.9 billion, servicing 3,758 SME customers.
Eligibility Criteria (includes): the Receivable is a product type contemplated and permitted by the Origination Guidelines; the Receivable is denominated and payable only in Australian dollars; the Receivable is secured by a Security Interest granted in favour of the Seller over either real property or personal property located in Australia and the benefit of all such Security Interest has been assigned to the Issuer; under the Receivable Terms, the Primary Obligor is required to make regular payments via direct debit for its remaining term; to the Seller's knowledge, having made all reasonable enquiries, the Receivable is not subject to any dispute, litigation or claim.
The provisional pool (at cut-off 30 June 2023) consists of 866 loans, where the average loan size is A$570,000 and the average borrower group size is A$1mln. Product (by loan count / receivables balance): business loan 494/75.99%, equipment loan 174/9.16%, home loan 59/7.50% and line of credit 139/7.35%. Repayment profile: P&I – 58.67%, interest only – 30.26%, other – 11.07%. Borrower Concentration: NSW – 36.57%, Victoria – 30.46% and Queensland – 14.65%.
UK & EU Risk Retention: On the Closing Date and thereafter on an ongoing basis, for so long as any Notes remain outstanding, the Seller will retain a material net economic interest of not less than 5% in accordance with the provisions of Article 6(1) of the EU Securitisation Regulation and in accordance with the provisions of Article 6(1) of the UK Securitisation Regulation respectively.
US Risk Retention: This transaction will not involve risk retention by the Seller for the purposes of the US Risk Retention Rules, but rather will be made in reliance on an exemption provided for in section 20 of the US Risk Retention Rules regarding non-US transactions.