Sunbit has completed its first asset-backed securitisation (ABS) valued at USD 200 million, achieving an AA rating for its senior tranche.
The fixed yield was set at 5.713% for the notes, which include a two-year revolving feature to meet future funding requirements. The deal was led by Citi as sole structuring agent and joint lead bookrunner, with J.P. Morgan and ATLAS SP Partners serving as joint lead bookrunners.
The transaction brings Sunbit’s total funding capacity to over USD 1.5 billion when combined with its existing warehouse facilities, which exceed USD 1 billion. More than 25 institutional investors participated, including insurance companies, asset managers, and hedge funds.
Capital market entry follows recent growth
The securitisation follows three consecutive quarters of positive operating income and 35% year-on-year revenue growth. According to representatives from Sunbit, the company decided to enter the ABS market at this point because of stable profitability and ongoing expansion initiatives. Officials added that the deal offers access to a wider institutional investor base at fixed rates, while also increasing funding capacity for its existing portfolio of 4.5 million transactions.
The company reported a 100% quarter-on-quarter rise in gross merchandise volume through its partnership with Stripe for point-of-sale financing. It also expects an 80% annual increase in co-branded credit card receivables.
The offering underwent due diligence by independent rating agencies, which reviewed Sunbit’s credit performance, operational processes, and financial reporting. Company officials said this process reflected the transparency and operational controls required for participation in institutional capital markets.
Sunbit develops technology used for point-of-sale lending and other financial services. Its products include no-fee credit cards for major retailers and a buy now, pay later solution available in a majority of U.S. auto dealership service centres. It also provides financing for dental services.
