P2P fund raising new cash through Zopa securitisation

The P2P Global Investments fund is looking to raise new money as part of a shift in strategy.

The largest investment trust offering exposure to P2P lending is looking to raise new money through a £209m book of loans originated by Zopa in an upcoming securitisation in a bid to reduce its cost of capital.

The £807m P2P Global Investments fund has appointed Deutsche Bank to facilitate the Zopa loan book's securitisation which will be used as collateral to raise new funds. P2P GI has, according to its latest factsheet, 20 per cent of its loan book in UK consumer debt most of which is presumably from Zopa.

The closed ended fund, which is listed on the London Stock Exchange, holds the loans – mostly originated this year – on its balance sheet. It has a strategic plan to move away from unsecured consumer exposure to more secured loans in various alternative credit niches although the priority is to move away from the US segment rather than the UK and it is important to stress that the Zopa loans remain on the balance sheet of P2P GI. 

The top note of the securitisation is listed AA by Moody’s and represents 80 per cent of the loan book. It is the second securitisation from Zopa after its debut peer-to-peer securitisation ‘Marketplace Originated Consumer Assets 2016-1 (MOCA 2016-1) which was rated AA on just 75 per cent of the pool.  The new deal will be called MOCA 2017-1 and total £225m.

It consists of 31,153 loans, with a total outstanding capital balance of  £209m. The average weighted Interest Rate is 7.2 per cent. The weighted average seasoning is 4.5 months, the weighted average remaining term is 45.7 months, while the weighted average original term: 50.2 months.

P2P Global Investments will hold a material net economic interest for the duration of the transaction. P2P Global Investments PLC will also, on the closing date, purchase at least 5 per cent of each class of notes in compliance with its risk retention requirements.

Correction: The article has been changed to reflect a misleading statement that P2P Global Investments was selling its Zopa loan exposure.