back Back

AI FinTech Lendbuzz closes $219m asset-backed securitisation

By Delisha Fernandes

February 05, 2024

  • AI
  • Algorithms
  • Auto Lending
Share

Lendbuzz, FinTech, Auto Finance, Credit Facility, Regions Bank, Shamrock Finance, Credit Score, Capital Markets, Loan Portfolio, Loan Origination, USALendbuzz, the AI-based FinTech company, has announced that it has closed a $219 million securitization collateralized by a pool of auto loans made to obligors and secured by new and used automobiles, light duty trucks, and vans.

“This was an incredibly successful transaction for Lendbuzz with a first time AAA rating, which is a testament to the Company’s focus on strong credit performance,” said George Sclavos, Chief Financial Officer at Lendbuzz. “We look forward to continuing to expand our asset-backed lender investor base, having added 12 first-time investors to the platform on this deal.”

Lendbuzz Securitization Trust 2024-1 (“LBZZ 2024-1”) issued four classes of notes: Class A-1, Class A-2, Class B, Class C. The LBZZ 2024-1 notes have been rated by S&P Global Ratings (S&P) and Kroll Bond Rating Agency (KBRA) as NR/K1+, AA-/AAA, A-/AA+ and NR/A-, respectively.

Goldman Sachs & Co. LLC acted as lead bookrunner and structuring agent, with J.P. Morgan Securities LLC and RBC Capital Markets, LLC as joint bookrunners; Regions Securities LLC acted as co-manager.

The AI-based FinTech company helps consumers obtain fair access to credit when purchasing a vehicle. Powered by alternative data and machine learning algorithms, Lendbuzz can assess the creditworthiness of consumers with limited credit history—a group underserved by traditional banks. Through the auto dealership partners, the company offers consumers attractive financing solutions while opening up opportunities for those dealerships to serve a more diversified customer base.

Lendbuzz remains committed to growing its asset-backed securitization program and expanding its asset-backed lender investor base, helping to provide additional liquidity for asset-backed lender investors and maintaining a diverse financing strategy for Lendbuzz. The additional capacity will allow Lendbuzz to continue on its mission to offer fair access to credit for underserved populations.

Previous Article

February 05, 2024

ICBC New Zealand & UnionPay International to boost QR code payments

Read More
Next Article

February 05, 2024

Airwallex & McLaren Racing to modernize global payment operations

Read More








IBSi Daily News Analysis

bahrain, islamic finance

February 22, 2024

AI

What makes Bahraini Islamic Finance industry so robust

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

Today

UNIPaaS unveils AI payment assistant solution for SaaS platforms

Read More

February 22, 2024

Bud & Fintech Galaxy bring AI-led Open Banking solutions to MENA

Read More

February 20, 2024

Flagright & Traxion team to offer digital transaction security

Read More

Related Reports

Sales League Table Report 2023
Know More
Global Digital Banking Vendor & Landscape Report Q4 2023
Know More
Wealth Management & Private Banking Systems Report Q4 2023
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q4 2023
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2023