Auxmoney closes €250m ESG bond securitisation

By Daniel Lanyon on Thursday 30 September 2021

Alternative Lending

The German-based digital lending platform has been strengthening its capital markets team in recent months bringing in ​​Boudewijn Dierick from BNP Paribas at the start of 2021.

Auxmoney closes €250m ESG bond securitisation
Image source: CFO Daniel Drummer, CEO Raffael Johnen and COO Arie Wilder (from left to right)

Digital consumer lender Auxmoney has placed a debut €250m securitisation, made up of 30,000 unsecured consumer loans, with one of the first social bond transactions in Europe. 

The transaction is labelled "Fortuna 2021 - STS German Consumer ABS". 

With this first deal, Auxmoney says it is serving the high demand for ESG investments to institutions. 

Proceeds from the issuance are used to provide credit to people who are underserved by banks, it adds.

Daniel Drummer, CFO at Auxmoney, said the demand from investors for ESG-compliant assets is very high. 

“With social bonds, Auxmoney offers institutional investors the opportunity to promote financial inclusion and invest according to social values." 

The German-based digital lending platform has been strengthening its capital markets team in recent months bringing in ​​Boudewijn Dierick from BNP Paribas.

Dierick added: "We are very pleased with the competitive pricing we have achieved in light of positive market reception. Our team is already working on placing further capital markets transactions." 

Auxmoney's social bond follows the standards defined in the International Capital Market Association's (ICMA) Social Bond Principles (SBP). ISS Corporate Solutions (ICS) has issued a Second Party Opinion (SPO) confirming the eligibility of the security as social bond. 

The securities are listed at Euronext Dublin and BNP Paribas has acted as Sole Arranger and Lead Manager. About Auxmoney.

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