Dublin-based First Citizen secures €150m credit line to offer car finance

Dublin-based First Citizen Finance Ltd has secured a €150 million revolving credit facility from international lenders, including Deutsche Bank, that it plans to lend for car purchases.

Led by Chris Hanlon, a former chief executive of Permanent TSB Finance, the company is aiming to capture a 15 per cent market share and build a loan book of €500 million within three years .

First Citizen will offer consumer hire purchase; non-consumer hire purchase and leasing agreements, and will continue to manage and provide funding for new vehicles and hire drive units.

It said yesterday that it was “aware of some significant opportunities presented by a number of lenders who are planning to exit or reduce their exposure” to the Irish market. “First Citizen is working to provide solutions in this area,” it added.

Its products will be available through motor dealers and through its website.

“It has been our ambition to be able to provide finance for new and used car purchases and we have achieved that goal ahead of schedule,” said Mr Hanlon yesterday.

“Ultimately, we aim to grow First Citizen to become the largest consumer finance company in Ireland.”

First Citizen was set up in 2012 by Mr Hanlon and other members of the former PTSB business. It acquired the business platform of PTSB Finance for a “nominal consideration”.

To date, it has concentrated on managing loan books in the motor, agri and personal finance sectors including the PTSB loan book, which was bought by Deutsche Bank for €287 million in November 2012.

It is also involved in portfolio management, the collection of assets and a range of legal and recovery options on behalf of financial services companies here. The company employs 75 staff.

First Citizen estimates that new car sales in Ireland have fallen from a 10-year average of 170,000 units to a current size of about 75,000 units per year.