Avant secures $255m and $392m deals for online loans

Online lender Avant is unveiling a $255m asset-backed securitisation deal with investment banks, as well as a renewal of its $392m warehouse facility deal with J.P. Morgan and Credit Sussie.

Credit Suisse also served as the lead bookrunner on the securitisation deal, with J.P Morgan and Morgan Stanley serving as joint book runners.

The company claims the asset-backed security was significantly oversubscribed.

Unlike traditional banks that can use customer deposits to finance loans, online lending startups are dependent on these types of deals with investment banks to support their core businesses.

Securing the deals is a positive sign for the online lending industry which has come under scrutiny recently with peer-to-peer firm LendingClub removing its CEO for failing to report a vested interest in an investment firm his company sold loans to.

Avant has raised more than $650m in funding to date and was valued at $2bn during its Series E round last September.

Copyright © 2016 FINTECH GLOBAL

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