Carro establishes S$450 million financing facility backed by car loans
This is to diversify its funding sources and provide financial flexibility to support regional expansion
[SINGAPORE] Online car marketplace Carro has established a S$450 million financing facility backed by automotive loans in Singapore, in what it said was the first asset-backed securitisation of its kind in the country.
In a statement on Thursday (Oct 22), it said that the facility would help diversify its long-term funding sources and provide greater financial flexibility to support its regional expansion.
The arrangement, known as asset-backed securitisation, enables Carro to obtain financing using car loans owed to its wholly owned subsidiary, Genie Financial Services, as backing.
The automotive marketplace said that the structure leverages the city-state’s Certificate of Entitlement system, which provides an underlying value for the vehicles securing the loans, helping to mitigate risks for lenders.
Mizuho acted as arranger for the transaction, while HSBC and JPMorgan Chase also participated. The three banks acted as loan providers and bond subscribers.
Carro’s co-founder and CEO Aaron Tan said: “By turning automotive loan receivables into an institutional-grade asset class, we are setting a new standard for automotive financing in South-east Asia.”
The firm’s chief financial officer Ernest Chew added that the arrangement would broaden the company’s access to funding partners and provide a scalable model for future expansion.
Founded in 2015, Carro operates in eight markets across the Asia-Pacific. It transacted more than 120,000 new and used vehicles in FY2026.
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