auxmoney places asset-backed security (ABS) on the capital market

Germany-based personal loan digital platform auxmoney has placed its first asset-backed security (ABS) with a volume of EUR 250 million on the capital market.

The transaction operates under the name ‘Fortuna 2021 - STS German Consumer ABS’. This ABS is a social bond, and the bond issue proceeds will be used to provide credit to people who are inadequately provided with credit by banks. According to an auxmoney representative, with the Social Bond, auxmoney is offering institutional investors a bond with which they can promote financial participation.

Auxmoney's social bond follows the standards defined in the Social Bond Principles (SBP) of the International Capital Market Association (ICMA). ISS Corporate Solutions (ICS) has issued a Second Party Opinion (SPO) confirming the security's suitability as a social bond. The transaction was certified by SVI as a securitisation that meets the requirements for simple, transparent and standardised securitisation (STS). The securities are listed on Euronext Dublin and BNP Paribas acted as sole arranger and lead manager.