back Back

Oportun completes $500m asset-backed securitization

By Edlyn Cardoza

October 29, 2021

  • Community Development Financial Institution
  • DBRS
  • FinTech
Share

Oportun, FinTech, USAOportun, an A.I.-driven FinTech recently announced the issuance of $500 million of three-year asset-backed notes secured by a pool of its unsecured and secured personal installment loans.

The offering included four classes of fixed rate notes: Class A, Class B, Class C and Class D notes. DBRS, Inc. rated all classes of notes, assigning ratings of AA (low) (sf), A (low) (sf), BBB (low) (sf) and BB (high) (sf), respectively. Kroll Bond Rating Agency, LLC rated the Class A and Class B notes, assigning ratings of A (sf) and BBB (sf), respectively. The notes were placed with a diversified mix of institutional investors in a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended. The notes were priced with a weighted average fixed interest rate of 2.48% per annum. Goldman Sachs & Co. LLC acted as lead book-runner with Jefferies LLC and JP Morgan Securities as joint book-runners.

“Our securitizations continue to draw outsized investor interest and confidence as evidenced by the scale and low costs that this most recent deal achieved,” said Jonathan Coblentz, Chief Financial Officer at Oportun. “The strong execution of this deal reflects the quality and consistency of our A.I.-driven credit underwriting and the hardworking nature of our customers, who continue to reward our investors by demonstrating their creditworthiness at scale.”

Oportun issued its first securitization in June 2013. Oportun is a financial services company that leverages its digital platform to provide responsible consumer credit to hardworking people. Using A.I.-driven models that are built on 15 years of proprietary customer insights and billions of unique data points, Oportun has extended more than $10.5 billion in affordable credit, providing its customers with alternatives to payday and auto title loans. In recognition of its responsibly designed products which help consumers build their credit history, Oportun has been certified as a Community Development Financial Institution (CDFI) since 2009.

Recently, IBS Intelligence reported that Oportun, an A.I.-driven FinTech that provides hardworking people with responsible, affordable, and credit-building alternatives to payday and auto title loans, announced the expansion of its Lending as a Service (LaaS) business with the addition of its new strategic partner, Barri Financial Group (Barri).

Previous Article

October 28, 2021

FinTech’s newest player Torpago raises $77m debt and equity round

Read More
Next Article

October 29, 2021

NatWest launches a tax calculator tool for businesses following a budget

Read More








IBSi Daily News Analysis

Cybersecurity, financial services

May 17, 2024

Community Development Financial Institution

Most of KSA organizations uses AI in their cybersecurity strategies, study shows

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

May 17, 2024

Niyogin acquires ‘Superscan’ from Orbo.ai to propel AI-led neo-banking

Read More

May 17, 2024

M&T Bank taps nCino & Rich Data Co. to manage credit risk and loan performance

Read More

May 16, 2024

Salt Bank taps Napier AI for Transaction Monitoring in Romania

Read More

Related Reports

Sales League Table Report 2023
Know More
Global Digital Banking Vendor & Landscape Report Q1 2024
Global Digital Banking Vendor & Landscape Report Q1 2024
Know More
Wealth Management & Private Banking Systems Report Q1 2024
Wealth Management & Private Banking Systems Report Q1 2024
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q1 2024
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