CEFC backs innovative finance approach to get more electric vehicles onto our roads
7 March 2024
The CEFC is investing up to $50 million as part of an innovative wholesale floorplan financing arrangement to accelerate Australia’s switch to electric vehicles (EVs), a key factor in achieving net zero emissions by 2050. The CEFC transaction, with Angle Auto Finance (AAF) aims to get as many as 20,000 new EVs onto Australia’s roads over the next two years.
AAF is Australia’s largest independent retail auto financier. It will draw on the warehouse finance to speed the turnover and recycling of credit for major vehicle dealer and supplier networks, allowing them to increase the volume and range of EVs they bring to Australia. It will also provide discounted consumer finance for retail EV loans financed by AAF.
The CEFC commitment comes alongside a committed senior facility from NAB and a mezzanine facility from alternatives investment manager, Regal Private Credit Opportunities Fund.
CEFC Head of Debt Markets, Richard Lovell said: “As a specialist investor, the CEFC has a strong record of developing new financing approaches to increase investment in our low emissions future, whether it is in renewables, climate tech, sustainable housing or electric vehicles.
This innovative transaction is the first known floorplan finance arrangement specifically targeting supply issues, one of the major barriers to the growth of Australia’s EV market.Richard LovellCEFC Head of Debt Markets
“This innovative transaction is the first known floorplan finance arrangement specifically targeting supply issues, one of the major barriers to the growth of Australia’s EV market. Together with AAF, we are creating a dealer supply side support mechanism to increase the volume of electric vehicles imported into Australia. In backing this financing approach, we can make a material difference for EV importers, dealers and consumers.”
Angle Auto Finance CEO Aaron Baxter said: “We’re delighted to have entered into this arrangement with the CEFC.It helps us deliver on a commitment to increase the supply of EVs into the Australian market and make it easier for Australians to finance the purchase of an EV.
“We’ve already had considerable success in providing wholesale floorplan finance to importers of EVs. This facility provides us with the ability to further support the sector, including competitive retail finance for buyers.”
Approximately 8.4 per cent of all new cars sold in Australia in the first six months of 2023 were electric vehicles, a 120.5 per cent increase on EV sales across all of 20221. But Australia lags substantially behind new EV sales in the UK (23 per cent) and Europe (25 per cent).2
Analysis from the Electric Vehicle Council suggests Australia will need to have as many as one million EVs on our roads by the end of 20273, with EVs accounting for more than 50 per cent of all new cars sales by 2030 if Australia is to meet its climate targets.
In 2022, passenger vehicles accounted for 60 per cent of Australia’s transport emissions, and almost 10 per cent of total emissions4.
The CEFC has helped finance more than 4,300 electric vehicles, exceeding $340 million in value including third party capital. The CEFC has also invested over $62 million in electric vehicle related projects, including increasing EV infrastructure with JETCharge and helping finance electrified bus fleets with Zenobe.
About Angle Auto Finance
Angle Auto Finance is Australia’s largest independent retail auto financier. The core business model of Angle Auto is the provision of floorplan finance to vehicle dealerships across Australia, consumer and commercial vehicle finance to that dealership’s customers, and providing novated leases to customers via novated lease intermediaries and salary packaging companies.Angle Auto is a portfolio company of Cerberus Capital Management, a global leader in alternative investing with US$60 billion in assets under management. Cerberus is the majority shareholder and Deutsche Bank is a co-investor.
1 Electric Vehicle Council, State of Electric Vehicles, July 2023. p3.
2 International Energy Agency, Global EV Outlook 2023, 2023.
3 Electric Vehicle Council, State of Electric Vehicles, July 2023. p9.
4 Department of Climate Change, Energy, the Environment and Water
