Speirs Finance secures $200m in first capital raise for NZ businesses

Michelle Herlihy, chief executive of Speirs Finance. Photo / Supplied

Speirs Finance Group, which specialises in lending to small to medium-sized enterprises, has completed its first capital raise.

The company said it had completed an asset-backed securities (ABS) issue, securing $200 million from institutional investors in New Zealand and Australia.

The multi-tranche notes carry Fitch ratings and settled early this month.

Speirs, which is owned by Australian private equity firm Anchorage Capital Partners, said its raise diversified the company’s capital strategy, expanding its platform to support the financing of equipment, vehicles, and technology across key sectors including construction, transport, healthcare, agriculture and fleet leasing.

Chief executive Michelle Herlihy said investor demand for the deal showed deep confidence in New Zealand’s economy.

“The funds give us greater firepower to help customers invest, innovate and keep New Zealand businesses moving forward,” she said.

The capital raise diversified the group’s funding base and further strengthened its balance-sheet resilience.

Proceeds would refinance receivables housed in Speirs’ “warehouse” facilities with Westpac and BNZ to free up capacity to accelerate new lending across its equipment, fleet and healthcare finance portfolios — areas proven to boost productivity and service delivery, Speirs said.

“We have seen considerable growth in our business over the last few years, where our book has gone from $300m to $750m,” Herlihy told the Herald.

“The [loan] book is incredibly clean, so there is demand out there from the small to medium-sized enterprise sector,” she said.

Herlihy said Speirs intended to tap this part of the market every year to further diversify its capital.

Speirs, founded in Palmerston North in 1964, includes a dedicated healthcare division and Yoogo Fleet, a nationwide vehicle-leasing and fleet-management provider founded in 2013.

Anchorage bought Speirs from Maui Capital and Milford Asset Management last year.

Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.