Australian peer-to-peer lender Plenti has completed its first securitisation.
The platform said it has issued AUS$306.3m (£162.3m) of notes to investors backed by secured automotive loans.
Miles Drury, chief financial officer for Plenti, said 87.8 per cent of the notes were expected to be triple A rated by Moody’s.
He said the transaction, expected to complete on 12 August, would “substantially reduce” Plenti’s funding costs.
Read more: RateSetter Australia rebrands
Read more: Plenti increases provision fund buffer
“This transaction helps us achieve one of our three core strategic objectives by substantially reducing our funding costs, whilst building out the depth and diversity of our funding,” Drury said.
“The attractive terms of the transaction are reflective of our proprietary technology and streamlined processes helping us attract high-quality borrowers as we continue to build our prime loan portfolio.”
Drury added that Plenti plans to become a regular issuer of asset-backed transactions.
“We are grateful for the strong support we received from 14 onshore and offshore investors in our inaugural ABS transaction, and we are looking forward to becoming a regular issuer of ABS transactions in the future,” he said.
Plenti previously used the branding of former UK peer-to-peer lender RateSetter and listed on the Australian Securities Exchange in September 2020.