Auxmoney engages in a 250 million euros “social bond” securitization transaction
German peer-to-peer lending platform Auxmoney has launched its first securitization deal, the proceeds of which will be used to boost financial inclusion.
Approximately 30,000 loans with a total value of € 250 million (£ 215.6 million) will be packaged and sold on the debt capital market.
Auxmoney said the proceeds from the issue will be used to fund people who are often under-supplied with credit by traditional banks.
He also said the deal was one of the first of its kind in Europe to include securities certified externally as social bonds.
Read more: Auxmoney obtains institutional support of € 250 million for consumer loans
“Our successful start in the capital markets is a milestone for Auxmoney,” said Raffael Johnen, co-founder and CEO of Auxmoney.
“With these social bonds, we underline our important contribution to the credit supply. Thanks to our technology, we can assess credit applications in a more differentiated way and thus provide more people with better access to credit.
Read more: Auxmoney appoints securitization specialist
“The award of the social bond label to this transaction is further proof of our contribution to more inclusive access to credit,” said Daniel Drummer, Chief Financial Officer of Auxmoney.
“Investor demand 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.”
Read more: Auxmoney hires former Barclaycard boss as executive chairman
“We are very pleased with the competitive pricing we have achieved in light of the positive market response,” said Boudewijn Dierick, Managing Director of Auxmoney Investments.
“Our team is already working on new transactions in the capital markets. “
Read more: Auxmoney secures a € 500 million partnership with BNP Paribas
Dan Zakowski leads the market finance team at Auxmoney. The securities are listed on Euronext Dublin and BNP Paribas acted as sole arranger and lead manager.