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Peer2Peer Finance News | July 19, 2019

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Funding Circle set for its largest ever securitisation

Funding Circle set for its largest ever securitisation
Marc Shoffman

DEUTSCHE Bank has unveiled more details on Funding Circle’s fourth securitisation, revealing it will be the highest-value package of loans it has offered so far.

The investment bank, which has been mandated as sole arranger and lead manager, said the deal will comprise 3,030 loans, with an aggregate balance of £244m and an average interest rate of 9.91 per cent.

In comparison, the peer-to-peer business lender’s third securitisation was a £187m deal in April, sponsored by Pollen Street Capital.

Prior to that, its second and first securitisations were valued at £206.5m and £129m respectively.

Commenting in April, Sachin Patel, chief capital officer at Funding Circle, said that the third securitisation validated the “attractive, risk-adjusted returns that are being generated for investors in SME loans.”

Funding Circle and Zopa are the only two UK P2P lenders to have securitised their loans to date. A recent report from credit agency DBRS predicted that securitisation will play a key role in the growth of P2P lending in the UK and Europe.