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TNR
15/11/2016 09:11
GENERAL
PRICE SENSITIVE
REL: 0911 HRS Turners Limited
GENERAL: TNR: Turners and MTF Sign Exclusive Partnership
15 November 2016
TURNERS AND MTF SIGN EXCLUSIVE PARTNERSHIP AND LAUNCH NEW LOAN PRODUCT
Integrated automotive financial services group, Turners Limited (NZX: TNR)
has signed an exclusive partnership with Motor Trade Finance (MTF) to provide
a non-recourse lending product to MTF's network of franchisees and dealers.
The new product has been developed in response to demand within the MTF
network and will see Turners take on the risk associated with the loans
originated by its franchisees and dealers. Approximately 90% of the loans are
expected to be for consumer purchase of motor vehicles, with the balance as
commercial lending, mainly on trucks and machinery.
The partnership introduces Turners to MTF's network of approximately 250
franchisees and dealers, significantly increasing the company's reach into
the motor vehicle finance sector, providing access to a number of new lending
opportunities for all parties. CEO of Turners Limited, Todd Hunter, said: "We
have had a long standing and successful relationship with MTF and this is
reflected in the substantial investment from both parties to get this product
developed and launched. Turners has an 8% shareholding in MTF and this joint
initiative further strengthens the partnership between our two organisations.
This offer will provide a great outcome for Turners, MTF and the MTF
network."
Glen Todd CEO of MTF commented: "For the first time, the MTF network will
have access to a non-recourse product through MTF's lending platform. 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. The non-recourse product
complements our existing model and will leverage off our superior credit
systems and processes. The platform is simple to use and the
recourse/non-recourse option allows MTF franchisees and dealers to easily
select the loan product that best meets their needs. We believe this offer
provides a unique opportunity for MTF and its network."
The partnership is for an initial two year term, with the right to extend,
and funding will be provided by Turners with the support of its banking
partner, BNZ. All loans will be fully secured and be eligible for Turners'
securitisation program which is currently in development and expected to be
launched early in 2017.
A pilot of the new loan product will commence in December 2016 with a
progressive rollout across the MTF network from early 2017.
ENDS