Auxmoney issues second securitisation

Germany-based fintech lending platform Auxmoney has issued its second securitisation for a social bond with a value of €225m (£191.5m).

Named ‘Fortuna Consumer Loan ABS 2022-1’, the bond contains around 25,000 asset-backed loans with an AAA-rating.

The bond was issued jointly with an external partner, Chenavari Investment Managers.

“Scalable funding has been a key success factor for Auxmoney’s growth story,” said Daniel Drummer, chief finance officer at Auxmoney.

“This capital market transaction again demonstrates the strength of the Auxmoney platform. In the midst of a rather challenging market environment, we just placed this year’s largest public asset-backed transaction of any consumer fintech company in Europe.

“On the back of our resilient funding platform, we can provide highly attractive terms to even more consumers, freelancers and self-employed.”

The platform issued its first securitisation deal in 2021, for a package of 30,000 loans worth a total of €250m. It said that the transaction was one of the first of its kind in Europe to include securities externally certified as social bonds.

“We are pleased that investor demand for Auxmoney loans is strong throughout the cycle,” said Boudewijn Dierick, managing director at Auxmoney Investments.

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“We will continue to innovate on our institutional offering and further expand our investor platform.”

The second securitisation is listed at Euronext Dublin. It features AAA-rated class A bonds which follow the standards defined in the International Capital Market Association’s social bond principles.

Citigroup has acted as sole arranger and joint lead manager with BNP Paribas while Latham & Watkins, Hogan Lovells and William Fry were involved as legal advisors.

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