Zip Takes On Afterpay With $400M NAB Investment Raise
Zip Co has asked National Australia Bank to start seeking investors, for the creation of a master trust for the buy-now-pay-later platform.
The company is looking to raise $400 million through the sale of asset backed securities, which would mature in two years.
The trust was first alluded to in its quarterly update last week, but this morning the company announced to the stock market that NAB has issued an indicative term sheet to investors.
The indicative term sheet lists seven note classes, with the majority of the funds sought (A$208 million) to come from its A1 note class.
Zip said the transaction is expected to be completed in the next 8 weeks.
Elsewhere, Zip rival Afterpay announced yesterday the appointment of external auditor Neil Jeans to carry out the audit of the company’s anti-money laundering and counter-terrorism financing as ordered by the Australian Transaction Reports and Analysis Centre.
An interim audit report is due by September 24, with the final report due November 23.