The first European securitisation of online unsecured consumer loans has closed – the latest alternative lender to tap the capital markets for the first time.
Fitch awarded the £138 million ($167.8 million) transaction the highest debut rating it’s ever given a deal backed by peer-to-peer (p2p) loans, at AA-.
The deal makes Zopa the latest fintech consumer lender to tap the international financial markets for growth and liquidity this year. P2P lending asset-backed securities (ABS) have been commonplace in the US for some time, but only arrived in Europe earlier this year. UK-based Funding Circle came first, with a £130 million deal in April.
“The level of work was far beyond what even we had anticipated,” said Cadwalader Wickersham & Taft partner Jeremiah Wagner, who advised Zopa on its debut deal. “And the fantastic ratings show that...