Funding Circle, a peer-to-peer lending marketplace for SMEs, has completed its $252m securitization.
This is the seventh securitization of Funding Circle business loans globally and the second in the US.
The transaction is rated by two ratings agencies, with the senior tranche earning an A- rating from Kroll Bond Rating Agency and an A3 rating from Moody’s Investors Service.
The oversubscribed transaction saw demand from 25 institutional investors including asset managers, insurance companies, pension funds and sovereign wealth funds.
Funding Circle has originated loans to over 14,000 US businesses. Furthermore, the FinTech has totalled $2bn of cumulative loan originations and $1bn of loans under management.
Funding Circle US managing director Bernardo Martinez said, “Funding Circle’s second US securitization furthers our commitment to providing institutional investors with access to this investment class.
“With our global securitization program and sponsorship capability, we can provide diversified funding for small businesses and deliver capital to this critically underserved borrower segment.”
Funding Circle launched on the London Stock Exchange in 2018 and raised £300m for its IPO. The sale put its valuation to £1.5bn.
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