Funding Circle, the small business loans platform in the UK, US, Germany and the Netherlands, has closed its first asset-backed securitization (ABS) of US small business loans originated through its platform, the company said.
The USD 198 million deal marks the debut of Funding Circle´s US securitization sponsorship capability, and is the fifth securitization of Funding Circle business loans globally.
The transaction is rated by two ratings agencies, with its senior tranche earning an A- (sf) rating from Kroll Bond Rating Agency and an A3 (sf) rating from Moody´s Investors Service. The oversubscribed transaction saw demand from 18 institutional investors, ranging from asset managers and private credit funds to insurance companies and sovereign wealth funds.
This further demonstrates the market´s continued confidence in small business loans originated through Funding Circle. More information about the transaction, Small Business Lending Trust 2019-A (SBIZ 2019-A), will be available on dv01 and Bloomberg.
Funding Circle brings together industry-leading risk management policies and cutting-edge technology, enabling investors to earn attractive risk-adjusted returns by supporting established and creditworthy businesses. To date, Funding Circle has originated loans to more than 14,000 US businesses, with US borrowers currently averaging 11 years in business and USD 1.4 million in annual sales. In the US, Funding Circle recently marked USD 2 billion of cumulative loan originations and USD 1 billion of loans under management, meaning that within the United States the company holds more US small business loans outstanding than almost 98% of banks.1
Funding Circle (corporate.fundingcircle.com) is a global small business loans platform, connecting businesses who want to borrow with investors who want to lend in the UK, US, Germany, and the Netherlands. Since launching in 2010, investors across Funding Circle´s geographies — including more than 90,000 retail investors, banks, asset management companies, insurance companies, government-backed entities, and funds — have lent USD 10.2 billion to 72,000 businesses globally.