MPOWER Financing, a fintech focused on international student financing, announced the completion of its second securitization, MPOWER Education Trust 2025-A.
The $313.2 million collateral pool is “composed of U.S. dollar-denominated, fixed-rate loans made to international students attending American and Canadian universities.”
The securitization size exceeds MPOWER’s inaugural securitization of $215.2 million in 2024, and “allows MPOWER to continue to scale loans issued primarily to graduate international students at more than 500 colleges and universities across the United States and Canada.”
Key deal elements:
- The nearly 50% increase in collateral pool size over MPOWER’s inaugural ABS reflects the company’s robust year-over-year growth and reinforces its commitment to being a repeat, programmatic issuer in the ABS market.
- All three bond classes were oversubscribed despite a larger deal size and ongoing bond market volatility, underscoring investor confidence in the credit quality of MPOWER’s loan portfolio and demand for global graduate STEM talent in North America.
- A number of investors from the 2024 securitization participated in MPOWR 2025-A, while several new investors expanded the investor base.
Deutsche Bank Securities Inc. served as the Structuring Agent and Joint Bookrunner, with Goldman Sachs & Co. LLC as Joint Bookrunner.
MPOWR 2025-A consisted of three tranches of notes.
Morningstar DBRS (DBRS) & Kroll Bond Rating Agency (KBRA) “rated the Class A Notes ‘A’(sf)/‘A’(sf), respectively.”
DBRS rated the Class B Notes ‘BBB’(sf) and Class C Notes and ‘BB(low)’(sf).
The securitization’s investors “include blue-chip names spanning asset management, pension plans, and insurance funds.”
International graduate students continue “seeking educational opportunities in the U.S. and Canada.”
Advanced degrees in STEM, AI, business, and healthcare “remain highly sought-after by employers.”
Manu Smadja, Chief Executive Officer of MPOWER said:
“Investors recognize the value of this diverse student segment: ambitious, resilient, and contributing to the global economy in critical sectors like STEM and new paradigms driving business, such as AI. By supporting them, we are strengthening our business model and fueling innovation and economic growth in North America.”
Jatin Rajput, MPOWER’s Chief Financial Officer said:
“Our loans are fixed-rate, generate cash flow even while students are still in school, and are disbursed directly to universities. That structure reduces risk and gives investors the transparency and predictability they seek. Our second securitization further validates our status as a repeat issuer and underscores the demand for international student loans as an asset class among institutional investors.”
MPOWER Financing, headquartered in Washington, D.C., and with employees worldwide, is “a mission-driven fintech company and the provider of global education loans.”
Its algorithm analyzes “overseas and domestic credit data as well as future earning potential to serve promising international students.”
MPOWER reportedly works with over 500 top universities “across the U.S. and Canada to provide financing to students from over 200 countries.”