Turners strengthens ties with MTF 15 Nov 2016
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Minister launches SmartGate in Wellington Travel
- Brownlee Leads Aviation Mission To Shanghai News
- Trams to make a comeback on Auckland’s streets News
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
Tuesday 15 November 2016 12:52 PM
Turners strengthens ties with MTF by funding its first non-recourse loan product
By Jonathan Underhill
Nov. 15 (BusinessDesk) - Turners, the financial services firm formerly known as Dorchester Pacific, has strengthened its ties with Motor Trade Finance by funding a non-recourse loan product that will allow MTF’s franchisees and dealers to sell vehicles to people with a higher credit risk.
MTF chief executive Glen Todd said in a statement that about 90 percent of the loans were expected to be for consumer purchases of motor vehicles, with the balance for commercial lending such as on trucks and machinery.
"The addition of a non-recourse product gives our franchisees and dealers greater choice to meet their individual appetite for risk and return, without exposing MTF shareholders to any additional risk," he said.
The 40-year-old vehicle finance company for auto dealerships has until now operated on a recourse basis, where MTF would provide the credit but the dealer would take on the risk of recovery if the loan went bad. That's an arrangement that's meant dealers and MTF are relatively risk averse compared to a Turners, which along with its own $176 million loan book has an in-house debt collection arm, auction services and auto insurance. Non-recourse loans will leave Turners to chase defaulters.
Turners chief executive Todd Hunter said he was optimistic about the funding arrangement, which is backed by Bank of New Zealand for an initial two-year term.
"It's a way to pass on our scale and risk appetite to their originator network," Hunter told BusinessDesk. Turners didn't have a specific target of how much lending it would write but had projected that it could become "a $50 million ledger within two years."
Hunter said MTF is offering "a white-labelled lending product that we offer to the wider market."
Turners is sitting on a paper profit from its acquisition of about 8 percent of MTF at $1.15 a share. The stock last changed hands on Sharemart at $2.50 and there's currently a buy order for 40,000 shares at $1.50 apiece. While both Turners and Heartland Bank have circled MTF, the Dunedin-based auto-financier said in June that it had rejected all offers from parties that had expressed interest in buying into the business as too low or unattractive.
Turners shares rose 1.9 percent to $3.21 and have gained 7 percent this year, just ahead of the S&P/NZX 50 Index.'s 6.7 percent gain. MTF's $40 million of perpetual bonds with a coupon of 4.47 percent were last quoted on the NZDX at $63 per $100 face amount, down from as much as $76 a month ago.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more