CORRECTED - Macquarie auto loans accepted for ECB repo deals

(Corrects reference to ECB widenening types of acceptable collateral in last paragraph)

(For the latest Australia and New Zealand bond news, double click on [AU/CRD] and then double click on the ID number) SYDNEY, July 3 (Reuters) - An auto loan-backed issue by Macquarie Group Pty Ltd (MQG.AX: Quote, Profile, Research) has become the first Australian asset-backed deal to be eligible for repurchase agreements with the European Central Bank.

Adrian Bentley, head of debt finance at Macquarie, said the euro portion of a A$1.2 billion ($1.15 billion) equivalent auto loan-backed securities issue by Macquarie Leasing had been accepted as collateral by the central bank.

Assets that are repo-eligible are attractive to bank buyers who can use them in their daily liquidity operations.

"It's good for investors since it makes the debt more liquid," said Bentley.

The deal, known as SMART 2008-1E and sold back in June, included two tranches worth a total of 455 million euros ($722 million) issued by a repackaging vehicle called ARC Funding.

The offer was increased from an initial size of A$650 million and the euro tranches priced tighter than preliminary targets thanks to strong investor appetite.

Bentley said Macquarie would consider a further issue now that the first one had won ECB acceptance.

"We put a lot of time and effort into this, so of course we would consider issuing more," he said.

Banks are increasingly submitting asset-backed securities and illiquid assets for use in ECB liquidity operations and the ECB has said it may need to refine its collateral rules. ($1=A$1.04, 0.63 euros) (Reporting by Wayne Cole; Editing by James Thornhill)