MPOWER Financing has completed its first securitisation. The $215.2m collateral pool is composed of US dollar-denominated, fixed-rate loans made to primarily graduate international students at leading US colleges and universities. It is the first securitisation of international student loans by a US-domiciled private student lending platform.
Along with $300m+ of warehouse commitments that MPOWER secured last year from Goldman Sachs, Deutsche Bank and Värde Partners, this securitisation enables MPOWER to put more than $500m towards its portfolio of loans issued to international students attending colleges and universities across the US and Canada.
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Goldman Sachs served as structuring agent and joint bookrunner, alongside Deutsche Bank. The securitisation’s initial investors include blue-chip names spanning asset management, pension plans, and insurance funds. MPOWER plans for this to be the first of a series of programmatic asset-backed securitisation offerings.
“This securitisation is a testament to the capital markets recognising our ability to originate attractive, high-credit quality student loans,” said Christopher Zaki, head of Capital Markets at MPOWER.
“These investors were impressed by our decade-long history of robust credit quality across different rate environments and by our student population. That is, predominantly graduate students, primarily in STEM and business fields, who are investing in their professional futures. Our portfolio is characterised by global diversification and offers investor returns that are uncorrelated with traditional asset classes. With this securitisation, we have demonstrated the strength of our business model. Our well-diversified and efficient capital strategy positions us to accelerate our strong growth in loan originations and value creation for both our shareholders and students.”
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