Deutsche Bank launched and placed what it deemed the "first securitization of subordinated microfinance credits" last week. The firm said that these subordinated loans will help 21 microfinance institutions to make a contribution to the fight against poverty by distributing at least 120,000 very small loans to microbusinesses in 15 developing and emerging market countries. -ST_TD- "The new product shows how a business investment can be meaningfully linked with ethical and sustainable objectives," said Hanns Michael Holz, Deutsche global head of sustainable development. The 60 million ($84.4 million) transaction, db Microfinance-Invest Nr. 1, was split into three tranches, including a senior tranche of 36 million taken up by private customers of Deutsche Bank and rated BBB' by Fitch Ratings, a 20 mezzanine tranche million, taken by institutional investor, KfW, and a 4 million junior tranche taken by Deutsche Bank. The BBB' rating has helped to attract certain institutional clients whose investment guidelines would otherwise have prohibited them to participate. The securitization targets high-net-worth individuals, foundations and church-affiliated institutions. These are investors who are increasingly attracted to the microfinance market, looking for investments which combine attractive returns with ethical values and sustainability. "The microfinance fund is able to bridge this gap and has therefore met with exceptional interest among our clients," said Joachim Hager, head of Deutsche Bank's private wealth management in Germany.
-
Broken down by product type, the agency's NJCLASS Standard Fixed product should account for a large majority of the loans, 75.4%. NJCLASS Consolidation will account for the next-largest group, 14.1%.
7h ago -
The notes will price against Treasurys, with spreads expected to fall between 85 and 90 basis points over the benchmark.
April 24 -
The JPMorgan Chase CEO took aim Tuesday at the proposed Basel III endgame rules, hindrances to mergers and bureaucratic burdens. "I would love to have a more productive relationship with regulators, but I think it takes conversation," Dimon said.
April 24 -
Bluegreen Vacation originated the loans and Fitch expressed confidence in its record of good performance as servicer.
April 23 -
Many legal experts think the Supreme Court will rule in favor of the Consumer Financial Protection Bureau in a case challenging its funding. Such a ruling would unleash a flurry of litigation that has been on hold pending the outcome of the constitutional challenge.
April 23 -
Lendbuzz sells the notes as it juggles mixed performance results from 2023. Originations and revenues saw huge jumps, but so did operating expenses.
April 23