Lendable Ltd., a UK digital lender backed by Goldman Sachs Group Inc. NYSE:GS, is raising 500 million, or approximately $671 million, through the sale of securities backed by personal loans. The Hoxton Consumer Loan Funding 2026-1 transaction marks the first time Lendable has entered the public asset-backed securities market to raise capital and could support the company's plans to expand further into lending. Lendable has originated more than 10 billion in consumer credit assets since it was formed over a decade ago and describes itself as the leading issuer of personal loans in the UK.
Investor demand for the offering appears strong, with orders covering every bond tranche by at least two times. Some of the lower tranches attracted enough demand to cover the available securities eight times, suggesting investors may have a growing appetite for higher-yielding consumer credit assets. Lendable reported 446 million in revenue in 2024, representing a 90% increase from the previous year. The portfolio behind the transaction consists of unsecured consumer loans provided to private individuals in the UK, while Moody's Ratings, a credit-rating agency, expects a lifetime default rate of 7.9% and recoveries of 20% based on the current UK economic outlook.
The transaction comes as Europe's asset-backed securities market begins to expand beyond mortgage-backed deals toward shorter-term debt such as car loans and unsecured personal loans. Admiral Financial Services Ltd., a consumer-loan provider, is also marketing a UK securitization expected to be finalized this week, while Auxmoney Investments Ltd., a specialist lender, is preparing another deal backed by German consumer loans. The growing pipeline could provide lenders with another source of capital while giving investors greater exposure to higher-yielding European consumer debt.