23 July 2012 7:01am

BMW Finance will make its debut in the asset-backed market in Australia this week, with marketing under way for a A$734 million securitisation of motor vehicle chattel mortgages and hire purchase receivables.

Through BMW Finance Trust 2012, the vendor financing arm of the car maker, BMW will refinance 17,600 loans with an average balance of A$41,600 and an average term to maturity of 40 months. The average balloon payment on each loan is A$29,600.

There is a $600 million senior tranche and a $134 million subordinated tranche. The senior tranche qualified for an AAA rating from...