Lombard loans in Australia.
Private credit against Australia-listed shares — pledged, not sold, with ownership retained.
A Lombard loan against Australia-listed shares is credit secured by a pledge of equity listed on the ASX. The holder pledges the shares as collateral, draws cash against a fraction of their market value, keeps beneficial ownership and dividends subject to structuring, and recovers the position in full on repayment.
- Lombard loans are arranged against shares listed on the ASX (ASX).
- The pledge is not a sale: ownership, dividends, and the upside stay with the holder.
- Loan-to-value is calibrated to the specific position, funded in AUD or cross-currency.
- Structured under the ASIC regime, with disclosure from 5%.
Eligible collateral and venues
Lombard Financing arranges facilities against equity listed on the principal Australia venue: Australian Securities Exchange (ASX). Eligibility at the position level turns on the liquidity and free float of the specific line, its volatility, and the size of the holding relative to its typical traded volume — the same variables that drive the loan-to-value.
Regulator and disclosure
Shares listed in Australia are regulated by Australian Securities and Investments Commission (ASIC). Substantial-shareholding disclosure is triggered from 5%, and a pledge over a large line is structured with that reporting regime in view so that the transaction remains discreet and compliant. Where a holding sits near a control or takeover threshold, the structure is arranged to avoid disturbing the position.
Funding, custody, and structuring
Facilities are typically arranged for a tenor of twelve to thirty-six months, funded in AUD or in another currency on a cross-currency basis. Throughout the facility the pledged shares are held by a qualified custodian under bankruptcy-remote arrangements, so the security is clean and the holder’s ownership is preserved. Non-recourse, limited-recourse, and full-recourse structures are available, and the choice interacts with the loan-to-value and the pricing.
| Listing venue(s) | Australian Securities Exchange (ASX) |
|---|---|
| Regulator | Australian Securities and Investments Commission (ASIC) |
| Currency | AUD (cross-currency available) |
| Disclosure threshold | From 5% substantial-holding disclosure |
| Principal indices | S&P/ASX 200, S&P/ASX 50, All Ordinaries |
| Indicative tenor | 12–36 months, renewable by agreement |
| Recourse | Non-recourse / limited-recourse / full-recourse |
Considering a Lombard loan against a Australia-listed position?
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Disclosure and regulation
Australian-listed shares fall under the Australian Securities and Investments Commission, with substantial-holding notices required under the Corporations Act (Section 671B) at 5% and on each 1% change. The distinctive feature for a large holder is the takeover regime: the 20% acquisition threshold, and the so-called creep rule that governs how a substantial holder may add to a position over time. A Lombard loan is a pledge rather than an acquisition, but it is structured with these mechanics in view — so that neither the grant of security nor a possible enforcement is read as an acquisition of a relevant interest that could engage the 20% ceiling.
An illustrative example
Take a private holding of AUD 60 million in an S&P/ASX 200 constituent — say a resources or financials line of the kind that dominates the index. At an illustrative loan-to-value of 55%, within the disclosed 20–65% band, the facility frees roughly AUD 33 million while the shares stay pledged and owned. Drawings can be taken in AUD or on a cross-currency basis where the client’s obligations sit offshore. Dividends, and the franking that attaches to them, remain with the holder, and the line is returned in full on repayment.
Illustrative only — not an offer, a quotation, or a commitment to lend.