Fintex Capital issues new round of Euro-denominated bonds

The investment firm has also onboarded a new institutional backer.

Alternative credit investor Fintex Capital has issued a series of new bonds via its Luxembourg-based vehicle Fintex Capital S.A.

The proceeds will be invested in German consumer loans originated by marketplace lender Auxmoney.

Fintex revealed that a European bank had taken part in the issuance as a new institutional investor in Fintex’s portfolio.

“A growing pool of institutions recognise that the Fintex strategies offer attractive returns in this lower-for-longer interest rate environment,” said Sophie Batoua, Chief Investment Officer at Fintex Capital.

Fintex has invested in Auxmoney’s marketplace consistently for more than 3.5 years, with €180 million invested, including re-investments.

“Generating attractive income is not easy in current markets. The returns available in traditional credit are – generally speaking – not exciting; in fact, they often appear insufficient considering the risks involved,” said Batoua.

“The meaningful growth in private debt, including tech-enabled credit, has opened up new opportunities for institutional-grade credit investments offering attractive risk-reward metrics.”