PEER-TO-PEER investment trust P2P Global Investments (P2PGI) has appointed Deutsche Bank to raise money against 31,153 Zopa loans in its portfolio in the latest securitisation activity in the sector.
The bank is offering the loans in three tranches worth £208.9m overall, 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.
The move comes as P2PGI moves towards more asset-backed investments and attempts to improve its performance.
A stockmarket update from P2PGI earlier this month, following the merger of MW Eaglewood and Pollen Street Capital, said the fund was confident in its ability to transition the portfolio into more attractive specialist assets with a greater exposure to sterling denominated assets and to secured assets.
It has been a busy year for P2PGI following a management review and attempts to lower the portfolio’s exposure to US consumer loans in favour of secured European real estate, consumer and small business loans.
The investment trust is still seeing its net asset value returns (NAV) rise but is currently trading on a discount to NAV of 22.1 per cent.
Last year, Zopa’s head of capital markets Jonathan Kramer told Peer2Peer Finance News that the firm is planning to securitise more of its loans to become “well known in the asset-backed securities community”.