Silicon Valley Bank (SVB) announced on Thursday it has entered into a multi-million risk retention financing agreement with fintech unicorn SoFi. According to SVB, the agreement provides financing to be used for SoFi’s risk retention bonds as part of their asset-backed securities (ABS) issuance requirements. SVB reported that its specialty finance group provides revolving lines of credit and term loans to companies and funds active in the consumer and enterprise sectors. The banking group noted that in the past 35 years it has helped innovative companies and their investors move ideas forward fast.
“SVB provides targeted financial services and expertise through its offices in innovation centers around the world. With commercial, international and private banking services, SVB helps address the unique needs of innovators.”
Speaking about the agreement with SVB, Chris Lapointe, CFO of SoFi
“SVB truly understands the unique needs of innovative companies like SoFi. As the ABS market is an important source of debt financing for SoFi, this committed revolving facility allows us to reduce risk at favorable terms.”
Nick Christian, Head of Specialty Finance at Silicon Valley Bank, added:
“SoFi is a leader in the personal finance space, and we are proud to expand our relationship with the team.”
The agreement with SVB comes less than a month after SoFi announced the launch of its first-ever credit card. According to SoFi, the credit card incentivizes healthy financial habits and delivers on its mission to help people get their money right and is part of the Mastercard exclusive card network. It does not carry an annual fee and provides up to 2% unlimited cashback when redeemed into SoFi Money or SoFi Invest accounts.