The senior tranche of a new securitisation of loans originated through Zopa has been rated AAA, the first ever pure P2P securitisation to achieve a AAA rating at issuance.
The GBP245 million securitisation was arranged by Deutsche Bank, and jointly led by Deutsche Bank and Standard Chartered.
It is the third securitisation of loans originated through the Zopa platform, and reflects the market’s confidence in Zopa’s ability to originate high quality loans, its approach to underwriting, and credit risk management. The transaction underlines the strong performance of Zopa’s asset class.
To date, Zopa Limited has facilitated GBP5 billion (GBP4.95 billionn) in unsecured personal loans to UK customers, making it the largest European consumer peer-to-peer lending platform by amount lent. Zopa Limited pioneered the peer-to-peer lending model in 2005, and more recently Zopa established a bank entity in order to broaden its customer proposition and product set. Zopa’s bank currently has a licence with restrictions.
Jaidev Janardana, CEO of Zopa, says: “Our ability to originate high quality loans continues to make the Zopa investment proposition an attractive and distinctive asset class for both institutional and retail investors. To receive the first ever AAA rating globally for a P2P securitisation is further endorsement of investor and market confidence in our origination and underwriting capabilities.”
This transaction follows the recent decision from both Moody’s and DBRS Morningstar to upgrade the ratings of the second securitisation of Zopa loans (Marketplace Originated Consumer Assets 2017-1 PLC).
Zopa offers unsecured personal loans and secured car finance online to low risk UK customers. It has 60,000 retail investors and a selection of institutions who lend through the platform.