German peer-to-peer lending platform Auxmoney has embarked on its first securitisation deal, with the proceeds to be used to boost financial inclusion.
Around 30,000 loans worth a total of €250m (£215.6m) will be packaged up and sold on the debt capital market.
Auxmoney said that the proceeds of the issuance will be used to finance people who are often inadequately provided with credit by traditional banks.
It also said that the transaction was one of the first of its kind in Europe to include securities externally certified as social bonds.
“Our successful capital markets debut is a major milestone for Auxmoney,” said Raffael Johnen, co-founder and chief executive of Auxmoney.
“With these social bonds, we underline our important contribution to the supply of credit. With our technology, we can evaluate credit requests in a more differentiated way and thus provide more people with better access to credit.”
Read more: Auxmoney appoints securitisation specialist
“The award of the social bond label to this deal is further proof of our contribution to more inclusive access to credit,” said Daniel Drummer, chief financial officer at Auxmoney.
“The demand from investors for environmental, social and governance-compliant assets is very high.
“With social bonds, Auxmoney offers institutional investors the opportunity to promote financial inclusion and invest according to social values.”
“We are very pleased with the competitive pricing we have achieved in light of positive market reception,” said Boudewijn Dierick, managing director at Auxmoney Investments.
“Our team is already working on placing further capital markets transactions.”
Dan Zakowski is leading the marketplace funding team at Auxmoney. The securities are listed at Euronext Dublin and BNP Paribas acted as sole arranger and lead manager.