Esanda, one of the biggest lenders to car dealers and buyers in Australia, is expecting continuing growth in its automotive businesses following its further integration into parent ANZ bank.

ANZ yesterday announced that Esanda would transition from a wholly owned subsidiary to a division of ANZ over the next three months.
The move allows Esanda to offer investors a government guarantee, as rather than selling debentures, as has been historically the case, a guaranteed ‘Esanda Term Deposit’ will be offered.

Anz’s managing director of Esanda, Moray McDonald says: “Esanda has built a broad base of loyal debenture customers. Our customers are naturally attracted to the government guarantee, and today’s change delivers them the benefit of the government guarantee when their debenture matures.”

Existing debenture holders are not affected until their debenture matures. Their existing terms and conditions continue to apply until maturity, when they will be offered the opportunity to rollover their investment into an Esanda Term Deposit.

McDonald says Esanda is already a winner following the GMAC and GE withdrawals, “As overseas financiers have withdrawn from the Australian market we have welcomed many new, quality auto retailers to Esanda and have begun an exciting new partnership with Subaru.”

This transition has been approved by the ANZ and Esanda Boards and has included consultation with the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission.

The transition to a division causes no change to management reporting lines or the position of Esanda staff, which were already ANZ Group employees.
Source: Autofile