Auxmoney completes second social bond securitisation worth €225m

The fruits of Auxmoney’s shift towards institutional investors.

European consumer lender Auxmoney has successfully placed its second asset-backed bond in the capital markets, following its first €250m placing last September.

This new bond, labelled “Fortuna Consumer Loan ABS 2022-1”, contains around 25,000 consumer loans with a value of €225m.

It’s rated as a AAA Class A bond which meets the Social Bond Principles of the International Capital Market Association due to the fact that its proceeds are used to provide credit to people underserved by traditional banks.

“In the midst of a rather challenging market environment, we just placed this year’s largest public asset-backed transaction of any consumer Fintech company in Europe,” said Auxmoney CFO Daniel Drummer.

“On the back of our resilient funding platform, we can provide highly attractive terms to even more consumers, freelancers and self-employed.”

Auxmoney’s work in placing these social bonds was recently recognised at the Global Capital European Securitization Awards, where the lender won “Most Innovative Securitization Deal of the Year” for its bond last year.

For this latest placing, Auxmoney issued the bond jointly with asset manager Chenavari Investment Managers.

Auxmoney’s securities are listed at Euronext Dublin and Citigroup acted as sole arranger and joint lead manager with BNP Paribas on this securitisation.

The lender’s journey to securitise its loans began last February, when Auxmoney hired Boudewijn Dierick from BNP Paribas as managing director of a newly created Auxmoney Investments division aimed at attracting institutional investors.