News September 28, 2016

Innovative Financing For On-Line Loan Investor

Deutsche Bank’s Global Credit Trading business in Global Markets completed an innovative bond financing for a UK peer to peer (P2P) investor yesterday.

The £150 million deal was backed by UK unsecured consumer loans owned by P2P Global Investments (P2PGI), a UK fund focused on the P2P space. The loans were originated through Zopa which is an online P2P platform connecting individual borrowers and lenders.

It is the first time in Europe that consumer loans originated on a P2P platform have been publicly securitized and opens up a new source of funding for other potential institutional investors. Zopa is the most established P2P platform in Europe having been in operation since 2004 and has originated over £1.6bn loans to date.

Deutsche Bank was the Sole Arranger on the deal which received a strong reception from investors with all three tranches on offer being well oversubscribed.

Earlier this year, Deutsche Bank arranged the first European securitization of SME loans from a P2P platform: a £130 million transaction of loans originated by Funding Circle.

The two transactions demonstrate Deutsche Bank’s leadership in this fast-growing part of the structured finance market.

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