The Money3 Corp Ltd (ASX: MNY) share price is on the rise in late morning trade, reaching a record high. This comes after the company announced it has been approved a new facility to support its ongoing loan book growth.
At the time of writing, the financial services company’s shares are fetching for $3.22, up 1.26% — an all-time high.
New facility to support growth
Investors are pushing Money3 shares into positive territory following the company’s sights to fund growth in the New Zealand market.
According to the release, Money3 advised its subsidiary, Go Car Finance has secured a NZ$40 million facility with Heartland Bank.
Founded in 2011, Heartland Bank is a New Zealand-owned bank, and a subsidiary of ASX-listed Heartland Group Holdings Ltd (ASX: HGH).
In addition, Money3 stated that the 3-year facility is an addition to the existing facility with the Bank of New Zealand. The new line of credit, however, will replace the current mezzanine finance facility. It’s also estimated that the cost of funding will be improved by more than 3% for the switch over.
Notably, Money3 has now secured facilities from four different banks. Two in Australia and also two in New Zealand. Furthermore, the group highlighted that it’s strategic intent was to diversify its funding strategy to ensure adequate funding capacity.
Moving into FY22, Money3 will seek to grow its loan book to more than $800 million since securing funding partners.
Money3 CEO, Scott Baldwin touched on the company’s progress, saying:
Over the past 24 months the Go Car team have executed perfectly on our growth strategy. Growing introduction partnerships across New Zealand and growing a quality loan book allowing us to introduce Heartland Bank to the Group.
The new facility along with the existing debt with the Bank of New Zealand will allow the group to further grow our loan book.
Heartland Bank CEO, Chris Flood added:
Heartland Bank is pleased to support Go Car Finance with funding for its New Zealand loan book. The funding aligns with Heartland Bank’s strategy to diversify business lending and is consistent with our long history of providing motor vehicle finance in New Zealand.
Money3 share price summary
In the past year, the Money3 share price has been ascending on an upwards trajectory, gaining over 120%. The company’s shares hit a record high today on the back of positive investor sentiment.
Based on the current share price, Money3 has a market capitalisation of roughly $671 million, with 207 million shares outstanding.