Monthly origination summary – July 2016

July was a record month at Bondora with a total of €2,289,230 of loans issued. The record came despite a slightly lower value of processed loan applications at €35,551,410. €5,269,680 of loans applications were made available in the peer-to-peer lending platform with the growth compared to June driven by improvements to funnel conversion rates (from 12.7% in June vs. 14.8 in July).

Below is our loan origination summary for month ending July 31, 2016 which highlights amount issued, share of origination and weighted average interest per country and risk grade.

Loan origination by country

  • Estonian loans continue to make up the largest share of originations, followed by loans issued in Finland and Spain with share of origination being respectively 61.3%, 26.8 and 11.9%.
  • Interest rates in Estonia are in mid-twenties, low thirties in Finland whilst Spanish borrowers are paying interest rates in mid-fifties.
  • These differences are caused by differences in risk grade structures between the markets. Estonian originations are prime, Finnish near-prime and Spanish sub-prime. We expect these differences to converge over time. Yet all countries and grades provide healthy returns and should be part of a diversified Bondora portfolio as illustrated by our portfolio performance.
Share by country – July 2016
Country Interest Amount Share
ESTONIA 26,21% 1403150 61,3%
SPAIN 56,09% 272055 11,9%
FINLAND 31,06% 614025 26,8%

Loan origination by grade

  • Risk grade distribution across countries has been relatively stable. Growth in lower risk segments is typically driven by more activity from non-retail investors.
  • Across countries AA to F grade loans make up 86.6% of originations with bulk of the volume coming from Estonian and Finnish C, D and E grades.
Share by country and grade – July 2016
Monthly origination summary – July 2016 - EstoniaESTONIA Monthly origination summary – July 2016 - SpainSPAIN Monthly origination summary – July 2016 - FinlandFINLAND
BR Interest Amount Share Interest Amount Share Interest Amount Share
AA 9,84% 28560 1,2%
A 12,07% 56255 2,5%
B 15,86% 198155 8,7% 17,13% 28695  1,3%
C 20,92% 288620 12,6% 21,72% 73670 3,2%
D 25,79% 296505 13,0% 27,53% 238960 10,4%
E 31,92% 323045 14,1% 36,09% 17530 0,8% 33,50% 118125 5,2%
F 38,08% 143260 6,3% 43,11% 39405 1,7% 39,64% 131835 5,8%
HR 46,79% 68750 3,0% 60,10% 215120 9,4% 53,59% 22740 1,0%