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.”
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.