Auxmoney issues third social bond worth €350m

Digital consumer lending platform Auxmoney has placed its third and largest asset-backed security transaction in the capital markets.

Named “Fortuna Consumer Loan ABS 2023-1”, the bond follows its second €225m placing last May, with its first having taken place in September 2021 at €250m.

According to Auxmoney, about 48,000 loans have been securitised for the latest bond.

“We are pleased to see the success and impressive demand for our recent bond issuance. With a record size of €350m, it is also one of the largest-ever social bonds issued in Europe by any fintech company,” Auxmoney CFO Daniel Drummer said.

“Being able to place our bonds in the capital markets throughout the cycle is a further testimony to the resilience of the auxmoney funding platform.”

According to the company, it is continuing to promote social and financial inclusion through its third social bond, making use of a “more differentiated risk assessment” to give access to more people who are typically underserved by lenders.

The German-based digital lender’s latest transaction marks the first consumer deal and the second European asset-backed security to re-open the market in 2023.

“With various classes being subscribed more than three times, investor demand has been strong from many accounts and we are more than satisfied with the result achieved,” Auxmoney investments managing director Boudewijn Dierick said.