New Zopa securitisation priced, highlights market confidence

By Ryan Weeks on Wednesday 25 October 2017

Alternative Lending

The second securitisation of Zopa loans gets away at significantly tighter spreads than the first.

A securitisation of loans originated by peer-to-peer lending firm Zopa has received a warm reception in the market. The deal, which is the second securitisation of Zopa loans, has been priced significantly tighter than last year’s transaction. News of the securitisation first broke mid-way through October.  

The securitisation was led by P2P Global Investments PLC, the first UK listed investment trust to dedicate itself to investing in marketplace loans, and was arranged by Deutsche Bank. The most senior class of notes was priced at 70bps over one month Libor, compared to 145bps last year.

The senior tranche of the £209m securitisation, which represents 80 per cent of the portfolio, was rated AA by Moody’s.

Consumer lender Zopa has facilitated over £2.7bn in loans to consumer to date, according to AltFi Data. Its first securitisation, MOCA 2016-1, priced in September of last year.

Zopa has said in a statement that the tighter pricing of the latest deal, MOCA 2017-1, reflects the growing maturity of its loans as an asset class.

“This is a further demonstration of investor and market confidence in our origination and underwriting capabilities,” said Jaidev Janardana (pictured), CEO of Zopa. “Our ability to originate high quality loans continues to make the Zopa investment asset a distinctive and attractive one to retail and institutional investors alike.”

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