The second securitisation of loans originated through the pioneering financial services company, Zopa, was priced yesterday at significantly tighter spreads compared to last year’s transaction. It reflects the growing maturity of Zopa’s loans as an asset class.
The securitisation was led by P2P Global Investments PLC (P2P GI), the first UK listed investment trust dedicated to investing in loans originated via marketplace lending platforms, and was arranged by Deutsche Bank.
The transaction reflects the market’s confidence in Zopa’s ability to originate high quality loans, its approach to underwriting, and its credit risk management.
To date, Zopa has facilitated over £2.7bn in unsecured personal loans to UK customers, making it the largest European consumer peer-to-peer lending platform by amount lent. Zopa is the world’s first peer-to-peer lending platform having pioneered the peer-to-peer lending model in 2005.
Zopa offers unsecured personal loans online to low risk UK borrowers, using advanced machine learning and data science techniques, and data from multiple credit bureaus, to assess each loan applicant.
Jaidev Janardana, CEO of Zopa, commented: “This is a further demonstration of investor and market confidence in our origination and underwriting capabilities. Our ability to originate high quality loans continues to make the Zopa investment asset a distinctive and attractive one to retail and institutional investors alike.”
The most senior class of notes was priced at 70bps over one month Libor, compared to 145bps last year.
This transaction follows the recent decision from both Moody’s and Fitch to upgrade the ratings of the first securitisation of Zopa loans (Marketplace Originated Consumer Assets 2016-1 PLC).