HMY SECURES ADDITIONAL NZ$215M FACILITY TO SUPPORT GROWTH

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28 June 2022

ASX / NZX RELEASE

HARMONEY SECURES ADDITIONAL NZ$215M FACILITY TO SUPPORT FURTHER BOOK GROWTH

Key highlights:
• Establishment of an additional NZ$215 million warehouse facility, supporting New Zealand growth
• This facility is led by one of Australia’s “big four” banks - Harmoney is funded by three of Australia’s “big four” banks across Australia and New Zealand
• With over 90% of the Group loan book now funded by warehouse facilities, Harmoney has a highly diversified funding panel, which provides for a cost-effective and capital efficient funding base to support its continued growth

Harmoney Corp Limited (ASX/NZX: HMY; “Harmoney” or “the Company”) is pleased to announce that it has entered into a new NZ$215 million warehouse facility with one of Australia’s largest banks. This new warehouse facility will provide further funding capacity supporting New Zealand’s loan book growth, and complements the Company’s balance sheet strength.
As announced on 27 April 2022, Harmoney’s loan book accelerated to NZ$627 million, a 13% increase quarter on quarter (QoQ). The establishment of this new $215m facility gives Harmoney significant warehouse capacity, deferring a New Zealand asset-backed securitisation that was being considered in recent months.

Commenting on the new warehouse facility, CEO & Managing Director David Stevens said:

“We have achieved yet another milestone for Harmoney. Back in 2019, we started the process of transitioning away from peer-to-peer funding and now within a short span of 3 years, we have accelerated this to be over 90% warehouse-funded. This new warehouse facility further unlocks our loan origination capacity, it provides a lower cost of funding to optimise growth, and further diversifies our funding panel. Our ability to secure this additional New Zealand warehouse facility, from the same “big four” bank that provided the new Australian warehouse in February 2022, demonstrates its confidence in Harmoney’s 100% consumer-direct business model and our continued ability to execute on our growth plans. Our total warehouse facilities are now over $950m, of which over $330m remains undrawn.”

Update to Neil Roberts’ employment agreement

As noted in section 6.3.3.3 of the Company’s Prospectus, Neil Roberts’ employment contract with the Group includes entitlements to compensation in the event of his termination (other than for serious misconduct or breach) or redundancy (“Compensation”). Mr Roberts’ employment contract has been updated to the Group’s current template for consistency with all other Group senior executives. In the process of standardising Mr Roberts’ terms of employment, the Group has agreed to satisfy its obligation and pay Mr Roberts’ Compensation. This amount will be repayable within 6 months if Mr Roberts’ employment is terminated for serious misconduct or breach within 6 months. Going forward, Mr Roberts will have no entitlement to compensation in the event of his termination or redundancy.

This release was authorised by the Board of Harmoney Corp Limited.

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For queries please contact:

Corporate/Investors
David Stevens
CEO & Managing Director
[email protected]

Investors
Adrian Mulcahy
Investor Relations
[email protected]
+61 438 630 422

ABOUT HARMONEY
Harmoney is the only 100% consumer-direct personal lender operating across Australia and New Zealand. Harmoney provides customers with unsecured personal loans that are fast, easy, competitively priced (using risk-adjusted interest rates) and accessed 100% online.
Harmoney’s purpose is to help people achieve their goals through financial products that are fair, friendly, and simple to use.
Harmoney’s proprietary digital lending platform, Stellare® is the power behind the platform. Stellare® can process, approve and fund most loan applications within 24 hours. Stellare® also replaces the traditional industry credit scorecard with Libra®, our predictive behavioural analytics engine. Libra® uses machine learning to analyse our rich, direct consumer data to deliver automated credit decisioning and superior risk-based pricing.

BUSINESS FUNDAMENTALS
• Harmoney provides risk based priced unsecured personal loans of up to $70,000 to consumers across Australia and NZ
• Its 100% consumer-direct model and automated loan approval system is underpinned by Harmoney’s scalable Stellare® proprietary technology platform
• A large percentage of Harmoney’s originations come from existing customers with no customer acquisition cost
• Harmoney is comprised of a team of ~80 full-time employees predominantly based in NZ, half of whom comprise engineering, data science and product professionals
• Harmoney has a highly diversified funding panel which includes warehouses being provided by three of the “Big-4” bank banks across Australia and New Zealand and in addition in October 2021 issued its first asset backed securitisation which was publicly rated by Moody’s.

For further information visit https://www.harmoney.co.nz/ or https://www.harmoney.com.au/

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Announcement PDF