Lendbuzz, a FinTech company specialising in utilising artificial intelligence to provide auto loans to a diverse range of borrowers, has concluded a $235m securitisation.
This financial manoeuvre was collateralised by a pool of retail automobile contracts made to obligors, secured by both new and used automobiles, light-duty trucks, and vans.
The transaction was skillfully facilitated, with J.P. Morgan leading as the bookrunner and structuring agent, while Goldman Sachs and RBC took their roles as joint bookrunners.
George Sclavos, Chief Financial Officer at Lendbuzz, said, “We are excited to have successfully closed our most recent ABS transaction despite the challenging market conditions. This milestone transaction underscores our investors’ confidence in the strength of our credit model and their belief in the continued high performance of our bond offerings.”
This landmark transaction marks Lendbuzz’s third securitization in 2023, and notably, it is the largest in the program’s history. This accomplishment is part of a period marked by record-breaking success for the company. It’s essential to highlight that over 20 distinct investors participated in this securitization, further solidifying Lendbuzz’s position in the market. Impressively, eight of these investors are newcomers to the program.
Lendbuzz is a Boston-based financial technology firm driven by artificial intelligence. The company is dedicated to ensuring that consumers, especially those with limited credit history, have equitable access to credit when purchasing vehicles. Utilising alternative data and cutting-edge machine learning algorithms, Lendbuzz can assess the creditworthiness of underserved consumers, a demographic often overlooked by traditional banks.
The firm’s partnership with auto dealerships not only provides consumers with appealing financing solutions but also enables dealerships to cater to a more diverse customer base.
This substantial securitization represents a significant milestone for Lendbuzz, affirming their commitment to providing fair credit access and their vision of diversifying the consumer base for auto dealerships.
Keep up with all the latest FinTech news here.
Copyright © 2023 FinTech Global
