A big milestone: our first public securitisation

We've just closed the first public securitisation of Abound loans which marks a major milestone in our growth journey. 

This opens up a new way for us to fund the loans we make. Instead of relying solely on a small number of funding partners, via securitisation a portfolio of our loans is packaged up and notes issued which are offered to a wide pool of institutional investors. It means the potential for more funding, from more places, which ultimately means we can keep lending to more people.

The transaction, Montgomery Square Consumer Funding 1, was arranged by Citi and is a c.£200 million issuance backed by Abound UK consumer loans and on which Abound acts as servicer and legal title holder. The senior tranche, comprising 80% of the collateralised notes offered, received a AAA credit rating from two major rating agencies, the highest possible in each case. And for a first-time issuer, that's a strong result.

The AAA ratings matters because they require an independent, rigorous assessment of both the quality of our lending and the transaction structure. It signals to investors that our approach to underwriting, built on cashflow analysis and real affordability data, is producing a loan book that stands up to serious scrutiny.

This isn't just a financing event. It opens up a new, scalable funding channel that supports our mission: expanding access to credit for UK consumers who are underserved by traditional lenders.

We're proud of what this represents, and excited to build on it.

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