Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
shutterstock_1055754077
December 6 2019

Zopa’s securitisation priced

Suzie Neuwirth Industry News, News DBRS Morningstar, deutsche bank, London Bay Loans Warehouse 1, M&G Specialty Finance, Prudential Loan Investments, securitisation, Standard Chartered Bank, Target Servicing, Zopa

ZOPA’S latest securitisation is its largest one to date.

Pricing has now been set for the third securitisation of the peer-to-peer consumer lender’s loans, with the total value across all tranches equating to £244.7m.

This is broken down into £113.9m of class A1 loans; a £50m tranche of class A2 loans; £24.4m of class B; £18.3m of class C; £13.4m of class D; £11m of class E; £8.5m of class F; and 5.2m of Z1 notes.

Interest rates have also been set on each tranche: Sterling Overnight Index Average (Sonia) +0.85 per cent for class A1; 1mL +0.81 per cent for class A2; Sonia +1.55 per cent for class B; Sonia +2.00 per cent for class C; Sonia +2.50 per cent for class D; Sonia +3.10 per cent for class E and Sonia +3.60 per cent for class F. Z1 notes receive principal-only payments.

Ratings agency DBRS Morningstar has assigned provisional AAA ratings to classes A1 and A2; an AA rating to class B; an A (high) rating for class C; A (low) for class D; BBB for class E; and BB (high) for class F.

Institutional investor London Bay Loans Warehouse 1 securitised the loans originated by Zopa. The deal is arranged by Deutsche Bank, which is also serving as joint lead manager alongside Standard Chartered Bank. Target Servicing will act as the back-up servicer.

“Our ability to originate high quality loans continues to make the Zopa investment proposition an attractive and distinctive asset class for both institutional and retail investors,” said Jaidev Janardana, chief executive of Zopa.

“To receive the first ever AAA rating globally for a P2P securitisation is further endorsement of investor and market confidence in our origination and underwriting capabilities.”

This is the third securitisation of Zopa loans, following a £138m deal in 2016 and a £208.9m securitisation in 2017.

M&G Specialty Finance and Prudential Loan Investments have pledged to subscribe for the loans and will hold 50 per cent of the minimum retained amount.

The securitisation will be listed on the Irish Stock Exchange and will reach final maturity in December 2028.

Zopa announced earlier this week that it has secured a £140m equity investment from IAG Silverstripe, paving the way for the full launch of its bank.

Platform failures enhance City investor focus on profitability Are you ready? Two major FCA regulations hit P2P sector on the same day

Related Posts

city skyline of Birmingham business district, West midlands, UK at dusk

Industry News, News, Top 3

West Midlands joins Innovate Finance Fintech National Network

Woman putting coins on stack with holding money, Concept business, finance, money saving and investment

Industry News, News, Property, Top 3

CapitalStackers reaches £100m investment milestone

Businessman separates the wooden puzzle with a picture of money. The concept of financial management and distribution of funds. Saving and investing. Property division. Legal services.

Industry News, News, Top 3

Treasury launches £120m London Capital & Finance redress scheme

Popular posts:

  • Business Loan Network appoints administrators
  • Assetz Capital launches new bridging product
  • Funding Circle chief turns down £190,000 pay rise
  • Starling Bank ready to acquire a lending business
  • PwC brings fintechs together for collaboration
  • FCA director says “there is more change to come”
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by