DEAL: Zopa consumer loans securitisation

Author: Lizzie Meager | Published: 1 Nov 2016

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-.

Rating agencies have voiced concerns over p2p lending platforms in the past

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...