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Invitation to submit ABSF investment proposals

29 January 2021

The AOFM invites market participants to submit proposals to be considered for investment by the ABSF. The deadline for receiving proposals is midday (AEDT) on 31 March 2021. More information and guidance on the format of investment proposals is provided below.

Proposal format

Proposals should include the following:
  1. A pitch book or standard investor information pack, including background material on the proponent’s organisation, its loan portfolio, and in particular the detailed performance information for loans that are included in the transaction proposed for investment by the ABSF.
  2. A detailed draft Term Sheet which sets out the terms and structure of the transaction that is proposed for investment by the ABSF. Term Sheets should include details of portfolio parameters and asset eligibility criteria of underlying loans. Market participants are encouraged to thoroughly review requirements as expressed in the ABSF legislation and supporting instruments, and specifically investment decision-making criteria in the Australian Business Securitisation Fund Investment Mandate Directions 2019. Proposals may include alternative structures or ranges around transaction parameters for the AOFM’s consideration.
  3. A statement of claims against the ABSF investment principles. This should be focused and succinct and limited to no more than one page per principle. Where principles have already been fully addressed in the background material provided in (1), it is acceptable to simply refer to the relevant page number or section.
  4. A completed copy of the SME lending market survey, which can be downloaded here.
The AOFM encourages the submission of complete proposals that avoid extensive negotiations.

Questions regarding the format of proposals should be submitted in writing to absf@aofm.gov.au prior to midday (AEDT) on 26 February 2021. At the AOFM’s discretion, de-identified questions and answers may be published on this webpage for the benefit of clarifying instructions for all proponents. The AOFM is planning an information session in mid-February where additional guidance on investment proposal requirements will be provided. Further details will be made available via our email subscription service, the ASF and AFIA.
Proposals may be submitted by the issuer, or on behalf of the issuer by an arranger, by email to absf@aofm.gov.au. The deadline for receiving proposals is midday (AEDT) on 31 March 2021.

Expected timeframe

The AOFM expects to announce its decision for this round of ABSF investments late in the second quarter of 2021. Decision timing will be a function of the number and complexity of proposals received. The AOFM will notify proponents individually of the outcome of their proposal, and will endeavour to notify proponents who have not been shortlisted as soon as possible.

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