FUNDING Circle’s latest securitisation has been priced.
Its senior A tranche has been given a coupon of 1.2 per cent above one month Libor, while its B class is priced at 1.8 per cent.
The coupon on its C, D and E class is at 2.75 per cent, 3.8 per cent and 5.4 per cent respectively.
It is the peer-to-peer business lender’s fourth securitisation and is being arranged by Deustche Bank.
The deal comprises 3,030 loans, with an aggregate balance of £232m and an average interest rate of 9.91 per cent.
The target settlement date in 17 July.
The securitisation forms part of Waterfall Asset Management’s £1 billion investment in Funding Circle loans announced at the end of last year.
“We are pleased to see our investment through Funding Circle reach one of its key milestones with this securitisation,” Henrik Malmer, managing director at Waterfall, said.
“The transaction marks another positive step for the Funding Circle platform.”
Sachin Patel, chief capital officer at Funding Circle, said this latest securitisation was further proof that “no matter what type of investor you are – from an individual with £1,000 to an asset manager with £1bn – lending through Funding Circle can provide attractive, risk-adjusted returns.”
The securitisation represents the largest package of loans offered by the platform so far.
In comparison, Funding Circle’s third securitisation was a £187m deal in April, sponsored by Pollen Street Capital.
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.