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Peer2Peer Finance News | January 18, 2019

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Zopa says securitisation pricing shows confidence in P2P

Zopa says securitisation pricing shows confidence in P2P
Marc Shoffman

ZOPA has hailed the confidence shown in the peer-to-peer asset class after its second securitisation was priced at significantly tighter spreads than last year’s transaction.

The P2P lender was involved in Europe’s first ever securitisation of unsecured consumer loans last year, worth £138m, and this becomes the continent’s second.

Like the first, it was led by investment trust P2P Global Investments (P2PGI) and arranged by Deutsche Bank.

But while the September 2016 tranches were priced at 145 basis points (bps) over one-month Libor, the latest, worth £208.9m, cost P2PGI 70bps.

“This is a further demonstration of investor and market confidence in our origination and underwriting capabilities,” Jaidev Janardana (pictured), chief executive of Zopa, said.

“Our ability to originate high quality loans continues to make the Zopa investment asset a distinctive and attractive one to retail and institutional investors alike.”

It was reported earlier this month that P2PGI had appointed Deutsche Bank to create the securitisation vehicle, which will then be reinvested back into the portfolio.

The average value is £7,488 with an average interest rate of 7.2 per cent and remaining term of 45.7 months, Deutsche Bank said.

“We are delighted the securitisation has proceeded well and our cost of leverage has been further reduced,” a P2PGI spokesperson said.

Read more: Zopa plans more securitisations