Today Funding Circle issued a press release that is worth bringing to your attention; highlighting our latest securitisation deal of an investors Funding Circle loan portfolio.

The full text of the release is repeated below, and can also be seen on our website here.

For the uninitiated, a securitisation is the process of taking an asset (in this example, a portfolio of Funding Circle SME loans) and turning it into a bond that can be traded on the public bond markets. It is an important part of how we support our institutional loan investors. Providing this mechanism to sell their loans frees up some of their capital to reinvest on the Funding Circle platform - helping even more small businesses access the finance they need, while also providing all investors with an independent public capital markets insight on the strength of our loan portfolio and our capability.

No other small business lender in the market is doing this currently - using the bond markets to support SMEs in this way and at this scale, so ours is a unique and innovative capability that we deliver for our institutional loan investors, and the Government has long-identified the capital markets as a source of untapped growth for small businesses.

This 240m transaction is the seventh UK public securitisation the team has supported to date, and were pleased with the outcome: two of worlds largest rating agencies (S&P and Fitch) have rated the deal, and the senior-most bond priced particularly well, demonstrating the continued strength of investor appetite even during a period of volatility in UK markets.

If you have any questions on this release please dont hesitate to reach out to us accordingly

Morten Singleton,

Director, Investor Relations

[email protected]

+44 (0) 7736 297 929

Funding Circle facilitates 240m securitisation of investor's SME loan portfolio

• Securitisation of Waterfall Asset Managements portfolio of Funding Circle loans is the seventh UK securitisation supported by Funding Circle

• The Senior most bondrated AA+ / AA by S&P and Fitchpriced at SONIA + 1.35%; demonstrates strong execution and investor appetite

• Waterfall Asset Management will use the bond proceeds to continue their 1bn funding partnership of SMEs through the Funding Circle platform.

Funding Circle, the UKs largest small business lending platform, and Waterfall Asset Management (WAM), a multi-national institutional asset manager, announce the closing of a 240m securitisation backed by SME loans.

The loans, financed by funds managed by WAM, and originated through the Funding Circle platform, were priced on 8th June and rated by both S&P and Fitch as AA+/ AA, respectively. The senior most bond was priced at SONIA + 1.35%, demonstrating strong execution and investor appetite, despite recent volatility in the UK markets. The transaction is intended to qualify as a UK Simple, Transparent and Standardised (STS) securitisation; meeting the high regulatory standards expected by investors.

This securitisation has allowed a range of institutional investors to purchase these loans through the asset-backed securities (ABS) market, broadening access to the SME loan asset class. This demonstrates Funding Circles ability to leverage the UKs deep capital markets to provide funding for SMEs; a largely untapped source of growth for these businesses. Funding Circle has now supported institutional investors with securitising a total of 1.4bn of UK SME credit through the ABS markets, helping them to efficiently redeploy their capital.

WAM will use the proceeds of this latest securitisation to continue deploying funds to small businesses through the Funding Circle platform, as part of a1bn funding partnershipagreed last year. This funding will seek to help tens of thousands more SMEs to invest, grow and create jobs in communities across every corner of the UK.

WAM is just one of a wide range of institutional investorsincluding banks, asset managers, pension funds and insurance companiesto leverage Funding Circles technology and distribution platform to deploy funding to SMEs. Funding Circles value proposition to these investors is built on a strong track record of robust and attractive returns, driven by powerful credit models and more than a decade of technology and data investment.

Were proud to continue our long-standing partnership with Waterfall Asset Management; together increasing Capital Markets investment into small businesses through this securitisation. Continued investor demand in the loans we originate is reflected in its pricing, and demonstrates the value our technology and distribution platform provides, even in challenging economic environments.

Lisa Jacobs

Chief Executive Officer, Funding Circle

Todays announcement is a great example of how were helping institutional investors to leverage the ABS markets and deploy their capital with optimal efficiency. Were proud of the relationship we have built with Waterfall Asset Management over many years; helping them lend more than 1.7bn to SME borrowers through our platform to date. This latest securitisation validates the attractive risk-adjusted returns we have been able to deliver to investors in the process.

Dipesh Mehta

Co-Head of Global Capital Markets, Funding Circle

Were pleased to have supported thousands of small businesses through the Funding Circle platform over the past five years. We appreciate Funding Circles flexible approach as a counterparty, and are delighted this latest securitisation allows a broader range of market participants to access this asset class.

James Cuby

Managing Director, Waterfall Asset Management

ENDS

For more information

[email protected]

Jack Pritchett: Communications & Policy Manager: 07522 237268

About Funding Circle

Funding Circle (LSE: FCH) is a lending platform for SME borrowers. Established in the UK in 2010, and now the leading lending platform to SMEs, the Group also has a material and growing presence in the US. Globally, Funding Circle has extended more than 15bn in credit to c.135,000 businesses.

For SME borrowers, Funding Circle provides an unrivalled customer experience, delivered through its technology and data, coupled with a human touch. Its solutions continue to help customers access the funding they need to succeed. For institutional investors, Funding Circle provides access to an alternative asset class in an underserved market, and delivers robust and attractive returns.

For lending investors, Funding Circle provides access to an alternative asset class in an underserved market, and delivers robust and attractive returns.

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