CommonBond Announces $750 Million in Lending Capacity from Top Banks
NEW YORK, Feb. 14, 2019 /PRNewswire/ -- CommonBond, a leading financial technology company, announced that it has signed $750 million in lending capacity from Goldman Sachs, Citibank, Barclays, BMO, and ING. The financings enable CommonBond to capitalize on its position as an industry leader by supporting the growth of its refinance and in-school student lending businesses. CommonBond has closed over $4 billion in financings to date.
In addition to growth, this lending capacity reflects significantly lower cost of capital for CommonBond, improving the company's borrowing spreads and advance rates. The company's senior bonds in securitization deals have been rated AAA since early 2018. Top banks look for consistently strong financial and credit performance and proven ability to execute in capital markets when they extend lending capacity.
Through these financings, CommonBond continues to fulfill its promise of providing competitive rates, simple options, and award-winning customer care to even more people with student debt in the U.S. These funds enable CommonBond to match increased demand for its student loan platform and introduce new products in 2019 to help students pay for school.
"From the start, we have set out to build the highest levels of trust with our customers and our capital partners," said CommonBond CEO and co-founder David Klein. "Access to this level of capital, and at a lower cost, is a testament to the platform we've built, the quality of our members, and the success of our capital markets program. We're thrilled to have some of the world's top banks recognize that, and work with us in a way that ultimately benefits the consumer. Our goal is to make student loan debt one less thing to worry about, and these financings help us deliver that."
Since the company launched nationally in 2013, CommonBond has established itself as a trusted service and valued voice in the student loan space. In addition to its capital partnerships, the company has inked a number of consumer-facing partnerships with banks and insurance companies in the last year. These partnerships allow financial institutions to fill their "Millennial product gap" by offering CommonBond student lending products to new and existing customers.
This announcement follows a period of significant growth for CommonBond, which originated over $1 billion of loans in 2018 and has originated over $2.5 billion since its national launch in 2013. CommonBond also recently acquired NextGenVest, an AI-powered financial platform for Gen Z, further solidifying its commitment to providing consumers with the resources needed to understand the nuances and costs of higher education.
For its innovative approach to higher education financing and disciplined growth, CommonBond was named one of Fast Company's 50 Most Innovative Companies, as well as one of TIME's 50 Genius Companies in 2018.
About CommonBond
CommonBond is a financial technology company on a mission to give students and graduates more affordable, transparent, and simple ways to pay for higher education. The company offers refinance loans to college graduates, new loans to current students, and a suite of student loan repayment benefits to employees through its CommonBond for Business(TM) program. By designing a better student loan experience that combines advanced technology with competitive rates and award-winning customer service, CommonBond has funded over $2.5 billion in loans, partnered with over 300 corporate clients, and currently serves over 100,000 members. CommonBond is also the first and only finance company with a "one-for-one" social mission: for every loan it funds, CommonBond also funds the education of a child in need, through its partnership with Pencils of Promise. For more information, visit www.commonbond.co.
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SOURCE CommonBond
