US-based artificial intelligence (AI)-driven fintech company Lendbuzz has completed a $219m asset-backed securitisation.
The securitisation is collateralised by a collection of auto loans made to borrowers and secured by both new and used automobiles, light duty trucks, and vans.
According to the AI fintech firm, the transaction is its first securitisation of 2024 and the sixth since launching the programme.
Lendbuzz Securitization Trust 2024-1 has issued four classes of notes, namely Class A-1, Class A-2, Class B, and Class C.
Lendbuzz chief financial officer George Sclavos said: “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.
“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.”
Launched in 2015, Lendbuzz supports consumers to secure better access to credit while purchasing a vehicle.
By leveraging alternative data and machine learning algorithms, the AI fintech firm can evaluate the creditworthiness of consumers who have limited credit history.
Goldman Sachs served as lead bookrunner and structuring agent while J.P. Morgan Securities and RBC Capital Markets were joint bookrunners for the latest transaction. Regions Securities acted as co-manager for Lendbuzz.
In October 2023, Lendbuzz raised $345m to expand its AI-powered auto finance platform. The firm raised the funds through a mix of $45m in equity funding and a forward flow facility of $300m.
The investment round was led by technology-driven financial services company Group 1001. It also had participation from existing investors including 83North, O.G. Venture Partners, and MUFG Innovation Partners.
