Australian peer-to-peer lending platform Plenti has announced its second securitisation, an AUS$280m (£157.4m) transaction backed by renewable energy and personal loans.
The company formerly known as RateSetter Australia will use the asset-backed security (ABS) transaction to reduce its funding costs, and to release capital back to the business to fund further loan book growth.
“The successful completion of Plenti’s second ABS transaction – our first backed by renewable energy and personal loans – will further diversify and deepen our funding structures while reducing our cost of funding, two key strategic objectives for Plenti,” said Miles Drury, Plenti’s chief financial officer.
“Despite a backdrop of geopolitical instability and market volatility, we were pleased with investor support for the transaction which demonstrates their confidence in the Plenti business and our ongoing growth opportunity.
“The inclusion of a substantial green-certified tranche in the transaction supports Plenti’s ambition of helping Australian households transition to renewable energy and improve their carbon footprint.
The securitisation is called the Plenty PL Green ABS 2022-1.
76 per cent of the notes have been rated Aaa by Moody’s.
Plenti completed its first securitisation in August 2021, by issuing AUS$306.3m (£162.3m) of notes to investors backed by secured automotive loans.
87.8 per cent of those notes were given a triple A rating by Moody’s.
At the time, Drury said that the platform was “looking forward to becoming a regular issuer of ABS transactions in the future.”
Plenti’s second securitisation is expected to settle on or around 10 March 2022, subject to satisfaction of customary conditions precedent.
National Australia Bank acted as arranger and National Australia Bank and Deutsche Bank acted as joint-lead managers of the transaction.
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