MPOWER Financing Securitizes $313.2 Million to Fuel Indian Students' Dreams Abroad
VMPL
Bengaluru (Karnataka) [India], May 14: MPOWER Financing ("MPOWER"), a mission-driven fintech firm and the leader in international student financing, today announced the completion of its second securitization, MPOWER Education Trust 2025-A ("MPOWR 2025-A"). The $313.2 million collateral pool is composed of U.S. dollar-denominated, fixed-rate loans made to international students attending leading 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 leading colleges and universities across the United States and Canada.
This milestone is particularly significant for students from India who often face barriers in accessing affordable education financing abroad. The securitization will enable MPOWER to expand its reach and offer more students -- especially talented Indian students -- the opportunity to pursue higher education at top institutions without the need for a co-signer, collateral, or U.S. credit history. Thousands of Indian students leverage MPOWER's support every year to access premier universities in the U.S. and Canada. By broadening access to financing, MPOWER is helping to empower the next generation of global leaders and drive socio-economic mobility for students worldwide.
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.
Strong demand amid a shifting landscape
Despite macroeconomic concerns, MPOWER Financing is experiencing a significant uptick in demand from Indian graduate students pursuing higher education in the U.S. and Canada. Indian students are drawn by MPOWER's fixed-rate, U.S. dollar-denominated loans that provide students with financial stability and peace of mind amid a potentially uncertain currency and interest rate environments. Backed by prominent Wall Street institutions, MPOWER's commitment to empowering international students resonates strongly with those seeking advanced degrees in high-demand fields such as STEM, artificial intelligence, business, and healthcare.
This deal comes at a critical time as demand for education financing among international students, particularly from India, continues to rise. Some key findings from MPOWER's 2024 Social Impact Report highlight the transformative impact of its financing solutions:
-India at the forefront: Thousands of Indian students have leveraged MPOWER's support to access premier universities in the U.S. and Canada.
-15x income growth: MPOWER students who graduate and secure employment in the U.S. experience an average 15x increase in their pre-graduation household income, emphasizing the transformative power of their education.
-Strengthening families: 75% of surveyed MPOWER students send an average of $645 (approximately Rs50,000) per month back home to support their families after graduation, fostering economic upliftment across borders.
"MPOWER is proud to be at the forefront of ensuring that the best and brightest students--from across the globe--have access to the financing they need to realize their educational dreams," said Manu Smadja, Chief Executive Officer of MPOWER. "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."
"This securitization speaks to the growing demand for high-quality student financing," said Jatin Rajput, MPOWER's Chief Financial Officer. "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."
About MPOWER Financing
MPOWER Financing, headquartered in Washington, D.C., and with employees worldwide, is a mission-driven fintech company and the leading provider of global education loans. Its proprietary algorithm analyzes overseas and domestic credit data as well as future earning potential to serve promising international students. MPOWER works with over 500 top universities across the U.S. and Canada to provide financing to students from over 200 countries. For more information, visit www.mpowerfinancing.com.
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