SoFi, a marketplace lender, announced it has priced a securitization of $417.6 million in refinanced student loans. It also announced SoFi was considered the first fintech company to receive an “AAA” rating from DBRS and an “AA2” from Moody’s for the senior notes, which equaled $387.3 million.
Nino Fanlo, SoFi CFO/COO, shared:
“We’re thrilled to continue our history of firsts. Last year we were the first marketplace lender to secure investment grade ratings from the leading agencies, and now we’re the first fintech company to receive a Triple A rating from DBRS.
It’s gratifying to see our investor base deepen, including twenty of the world’s leading and most highly regarded institutional investors. These ratings are further proof that we’re creating capital efficiency that strengthens the value of our products for our members.”
In total, SoFi has completed six securitization of refinanced student loans with a total value of more than $1.85 billion. In the coming months, SoFi expects to broaden its securitization transactions into other asset classes, such as personal loans and mortgages, where its loan volume continues to grow.
SoFi completed its first rated securitization in 2013. In 2014, SoFi became the first marketplace lender to secure investment grade ratings from S&P and Moody’s for senior notes in a securitization.
Fanlo added:
“More broadly, we believe we’ve led about two thirds of the total securitization in the marketplace industry. Looking ahead, we look forward to strengthening our leadership position and broadening the appeal of these transactions even further.”
