Plenti stocks skyrocket on NAB loan partnership
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More news: Shares in credit provider Plenti have soared 69% after it struck a deal with NAB to offer car and renewable energy loans to the bank's customers. Plenti shares were trading at o $0.575 at 2pm AEDT, while NAB shares were up by 1.4% by the same time.
NAB and Plenti partner to offer car, renewable energy loans
The news: National Australia Bank (NAB) and credit provider Plenti have struck a deal for the latter to offer car and renewable energy loans to the bank's customers.
The numbers: Under the partnership, NAB will also have the right to buy up to 15% of Plenti's share capital.
The context: The 'NAB powered by Plenti' car and electric vehicle loans will become available in the first half of 2024, followed by the energy loans. The bank will fund the loans and pitch them to its customers. Plenti will handle loan application, assessment, settlement and support.
The two ASX-listed companies will provide the products for five years, under the agreement. There is an option to extend for a further five years. Plenti said the products would be offered directly to consumers and not impact its broker network.
Car and equipment loans are a burgeoning market for Australian lenders. Pepper and Metro Finance are among the competitors.
What they said: "This strategic partnership is expected to have a meaningfully positive impact on Plenti's growth and profitability in future years," said Plenti chief executive Daniel Foggo.
"The use of electric vehicles and environmentally sustainable products in the household is becoming more common in Australian homes and we're keen to support our customers transition to a low emissions future," said NAB personal everyday banking executive Paul Riley.
The source: ASX announcement
