Auxmoney issues third securitisation
German peer-to-peer lender Auxmoney has placed its third and largest secured bond to date on the capital markets.
The “Fortuna Consumer Loan ABS 2023-1” has securitized around 48,000 loans worth €350m (£311m), according to the Auxmoney.
The bond follows a €225m placing in May 2022, which followed its first in September 2021 for a package of 30,000 loans worth a total of €250m. The first transaction was one of the first of its kind in Europe to include securities externally certified as social bonds, according to the firm.
Auxmoney uses AI-backed scoring technology to connect investors with digital consumer loans.
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“We are very pleased with the great success and impressive demand for our recent bond issue,” said Auxmoney chief financial officer Daniel Drummer.
“With a record volume of €350m, it is also one of the largest social bonds ever issued by a fintech company in Europe. We have shown that we can place our bonds on the capital markets throughout the cycle. This is another testament to the strength of the Auxmoney funding platform.”
The lender said the third social bond will continue its aim to promote social and financial participation, using “a more differentiated risk assessment” to enable those underserved by traditional providers to access to credit.
“Following a very quiet ABS market in the fourth quarter of 2022, this transaction was the first consumer bond and only the second securitization bond ever placed in the euro market this year,” added Auxmoney’s managing director Boudewijn Dierick. “All tranches were oversubscribed several times due to high investor demand.”
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