CBA lends $380m to Australian NBFC

The bank is supporting the expansion of Metrics Credit Partners as it seeks to grow its corporate lending activities.

Metrics Credit Partners, an Australian non-banking financial company, has received a A$500 million ($380 million; €359 million) facility from the Commonwealth Bank Australia (CBA).

The A$500 million multi-currency cash advance facility will be used to strengthen the financing capacity of the firm’s fund, Metrics Credit Partners Diversified Australian Senior Loan Fund, according to a statement.

Metrics Credit Partners Diversified Australian Senior Loan Fund is an open-ended fund that was launched in 2013. It has a total of A$2.2 billion in assets under management to-date.

The fund invests primarily in Australian corporate loans and other associated debt instruments. It has a ticket size between A$10 million to A$85 million. It lends to both investment-grade and non-investment grade companies, according to Metrics.

Other investors in the fund include Australian institutional investors, funds of funds and foundations.

“The fund offers investors direct exposure to Australia’s bank-dominated corporate loan market by investing in syndicated loans to Australian public and private companies and other corporate debt assets,” said Metrics in a statement.

CBA was the sole mandated lead arranger and bookrunner for the transaction.

“Metrics has become a highly respected and important participant in the syndicated loan market. Commonwealth Bank was delighted to support Metrics by arranging the Fund’s inaugural syndicated loan facility which will provide a great platform for their next growth phase,” added Sean Sykes, executive director loan markets and syndications at CBA.

Metrics is the largest debt holder in mine site trucking company Bis Industries with a 30 percent stake. It is also a lender to the law firm Slater & Gordon which is working on a debt-to-equity swap with its lenders, according to local press reports.

Metrics Credit Partners is an independent specialist investment manager specialising in direct lending, credit and fixed income markets and has grown to in excess of A$2.5 billion in assets under management across a range of investment strategies.