Novel fintech transaction completed with Mills Oakley's advice

The firm says the deal “sets a new standard for collaboration between the fintech and mainstream banking sectors”

Novel fintech transaction completed with Mills Oakley's advice

Mills Oakley has helped ensure that a novel fintech transaction is completed successfully.

The top firm advised the Bank of Queensland (BOQ), which has sold its existing debtor finance portfolio to Octet Finance, through BOQ Equipment Finance (BOQEF).

Under the arrangement, which was completed at the end of August, BOQ will remain involved in the business, having agreed on a phased financing arrangement to support the receivables book and Octet.

Financial details of the deal were not disclosed, but a report from the Australian Financial Review said that the finance book is worth around $100m.

Mills Oakley said that the first phase, expected to complete this month, will fund all eligible BOQ receivables acquired by Octet. The two parties will work together on the second and third phases of the deal, funding new receivables and other loan products approved by the lender.

Mills Oakley advised BOQ on the sale of the finance book and advised BOQEF on the financing.

Corporate partner Juanita Rayson and senior associate Lauren Weier advised on the sale side, while banking and finance partner Monique Stella and senior associate Isabella Barnes advised on the financing, Mills Oakley said. Consultant Mick Coleman also assisted the firm’s Melbourne office on privacy matters.

“This transaction means that BOQ’s customers will benefit from the bank’s relationship with Octet and the latter’s deep expertise in the sector, particularly from founder and managing director Clive Isenberg and Chairman Peter Gammell, who are widely respected for their achievements in the debtor finance market and who will be able to leverage off a strong debtor finance customer base from BOQ,” Stella said.

Monique Stella