Marketplace Lender auxmoney Issues €350M Social Bond

Following its prior issuances in 2021 and 2022, auxmoney has “placed its third ABS transaction with a record amount of EUR 350 million.”

With this transaction, auxmoney has “been re-opening the European market in 2023 with the first consumer ABS deal.”

Strong investor demand has reportedly “resulted in all placed tranches being significantly oversubscribed Düsseldorf/Dublin, 17th February 2023.”

auxmoney, a digital-lending platform for consumer credit in Europe, has successfully “placed its third and largest-ever asset-backed security transaction in the capital markets.”

With this transaction named “Fortuna Consumer Loan ABS 2023-1”, about 48,000 loans “have been securitised.”

Dr. Daniel Drummer, CFO at auxmoney, explains:

“We are thrilled to see the success and impressive demand for our recent bond issuance. With a record size of EUR 350 million, it is also one of the largest ever social bond issued in Europe by any Fintech company. 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.”

Daniel Drummer, CFO auxmoney, said:

“With its third social bond, auxmoney continues to promote social and financial inclusion. Through a more differentiated risk assessment, auxmoney enables more people with access to financials means who are underserved by traditional lenders. In line with the Social Bonds Principles, proceeds from the issuance are used to enable the financial inclusion of the relevant population groups.”

Boudewijn Dierick, Managing Director at auxmoney Investments, adds:

“After a very quiet ABS market in Q4 2022, this transaction was the first consumer deal and only the second EUR ABS 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 pleased with the result achieved.”

Boudewijn Dierick, Managing Director at auxmoney Investments, said:

“The AAA-rated class A bonds issued follow 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 transaction is certified by SVI as a securitisation meeting the requirements for simple, transparent and standardised securitisation (STS). The securities are listed at Euronext Dublin.”

As covered, auxmoney claims it is “a leading digital-lending platform for consumer credit in Europe.”

Through unique risk models and truly digital processes, auxmoney says it “improves access to affordable credit while reducing the risk and cost of lending.”

Customers benefit “from better rates and transparency.”

Many institutional investors like family offices, banks, insurances or specialized funds are taking advantage of “the predictable returns achievable on the auxmoney marketplace. auxmoney is on the forefront of promoting and improving financial inclusion.”

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