Carro unlocks S$450m securitisation backed by Singapore car-loan receivables

Asia-Pacific automotive marketplace Carro has established a S$450m (approximately US$352m) asset-backed securitisation warehouse, opening a new institutional funding channel against vehicle-finance receivables originated in Singapore.

The facility, announced on 22 October, is backed by hire-purchase receivables generated by Genie Financial Services, Carro’s wholly owned financing subsidiary.

Mizuho acted as arranger, with Mizuho, HSBC and J.P. Morgan participating in the loan and note structure. The transaction uses a bankruptcy-remote special-purpose vehicle to purchase and securitise the underlying receivables.

Its distinguishing feature is the funding mechanism. Rather than requiring every participating institution to buy securities, the structure allows banks to provide direct loans or subscribe to notes on an equal-ranking basis within the same vehicle.

That hybrid arrangement broadens the potential funding base for the receivables while accommodating different institutional investment and regulatory preferences.

Carro describes the transaction as Singapore’s first automotive loan receivables securitisation of its kind. The structure operates through a special-purpose vehicle approved under the Monetary Authority of Singapore’s relevant framework.

The underlying assets comprise loans secured against vehicles purchased through Singapore’s hire-purchase market. Carro argues that the country’s Certificate of Entitlement system provides an additional measure of collateral support through the residual value associated with vehicle ownership rights.

However, the strength of the securitisation will still depend on the performance of the loans, borrower repayments, vehicle valuations and the enforceability of the security.

Carro says independent calculation agents and automated data controls form part of the transaction’s risk-management arrangements, with further real-time reporting capabilities planned through an application programming interface.

The company has not disclosed pricing, individual bank commitments, advance rates, expected utilisation or how much of the S$450m capacity was initially funded.

Carro transacted more than 120,000 new and used vehicles during its 2026 financial year and operates across eight Asia-Pacific markets.

For the company, the facility creates a route to funding vehicle lending without relying exclusively on conventional corporate borrowing. For institutional financiers, it provides access to a defined pool of automotive receivables through either loan or capital-markets exposure.

The larger significance lies in establishing a repeatable financing structure for a specialist asset class that has previously had more limited access to securitisation funding in Singapore.