Carro lands US$330M car-loan-backed facility to fund regional push
What's the deal? Singapore car marketplace Carro has established a US$330M financing facility backed by automotive loans, in what it called the first asset-backed securitisation of its kind in the country. MizuhoDealroom has a profile for this one. Try Dealroom → arranged the deal, with HSBC and JPMorgan ChaseDealroom has a profile for this one. Try Dealroom → participating as loan providers and bond subscribers.
How it works: The structure lets Carro raise financing against car loans owed to its wholly owned subsidiary, Genie Financial ServicesDealroom has a profile for this one. Try Dealroom →. It leans on Singapore's Certificate of Entitlement system, which gives the underlying vehicles a value that helps mitigate risk for lenders.
What's the endgame? Carro said the facility will diversify its long-term funding sources and support regional expansion. Founded in 2015, it operates in eight Asia-Pacific markets and transacted more than 120,000 new and used vehicles in FY2026.
Why now? This is debt secured against car loans, not fresh equity, and it extends an existing push to scale Carro's lending arm. HSBC previously provided a US$55M auto-loan-backed facility, and Carro's loan book has grown past US$366.7M with a non-performing loan rate below 0.5%.
"By turning automotive loan receivables into an institutional-grade asset class, we are setting a new standard for automotive financing in South-east Asia," said co-founder and chief executive officer Aaron Tan.
What could go wrong? The facility's value hinges on how well Carro grows lending while managing credit risk across its markets. A deteriorating loan book would weaken the collateral underpinning the deal.
The signal: The round sits in the 91st percentile by size among debt deals in its sector, a mark of how willing major banks now are to finance a startup against its loan book. It also tracks rising interest in automotive lending partnerships across Asia, as Carro weighs a dual Nasdaq-SGX listing.
Read more: businesstimes.com.sg
Image credit: William Hook
