£240m securitisation of Funding Circle loans closes
Waterfall Asset Management (WAM) has securitised a £240m portfolio of Funding Circle loans and will use the proceeds to continue lending to small businesses through the platform.
The deal is the seventh securitisation of Funding Circle loans, bringing the cumulative transaction value to £1.4bn.
The loans, financed by funds managed by WAM, and originated through the small business lender’s platform, were priced on 8 June and rated by both S&P and Fitch as AA+/ AA, respectively.
The senior most bond was priced at SONIA +1.35 per cent, which Funding Circle said demonstrates “strong execution and investor appetite, despite recent volatility in the UK markets”.
WAM, an institutional asset manager, agreed a £1bn funding partnership with Funding Circle last year.
It joins a wide range of institutional investors, including banks, asset managers, pension funds and insurers, in leveraging Funding Circle’s platform to deploy funding to small- and medium-sized enterprises.
“We’re proud to continue our long-standing partnership with Waterfall Asset Management; together increasing capital markets’ investment into small businesses through this securitisation,” said Lisa Jacobs (pictured), chief executive at Funding Circle.
“Continued investor demand in the loans we originate is reflected in its pricing, and demonstrates the value our technology and distribution platform provides, even in challenging economic environments.”
James Cuby, managing director at Waterfall Asset Management, said the firm was pleased to have supported thousands of small businesses through the Funding Circle platform over the past five years.
“We appreciate Funding Circle’s flexible approach as a counterparty, and are delighted this latest securitisation allows a broader range of market participants to access this asset class,” he added.
Funding Circle signed a number of institutional funding partnerships last year, including a £400m deal with US asset manager Varadero Capital and a £300m agreement with Magnetar UK.
