MPOWER Financing, a fintech leader in international student financing, today announced the successful completion of its second securitisation transaction, MPOWER Education Trust 2025. This $313.2 million collateral pool consists of US dollar-denominated, fixed-rate loans extended to international students enrolled at top universities across the United States and Canada, according to an official release.
Surpassing MPOWER’s inaugural 2024 securitisation of $215.2 million, this larger transaction aims to enable the company to further scale its lending, primarily to graduate international students attending over 500 premier institutions in North America.
“Our second securitisation further validates our status as a repeat issuer and underscores the demand for international student loans as an asset class among institutional investors,” Jatin Rajput, Chief Financial Officer, MPOWER, said.
This milestone is especially impactful for Indian students, who frequently encounter challenges in securing affordable education financing abroad. By expanding its lending capacity, MPOWER is poised to support more talented Indian students in pursuing advanced degrees at leading universities without requiring co-signers, collateral, or a US credit history, the release mentioned.
Through improved access to funding, MPOWER aims to empower the next generation of global leaders while promoting socio-economic mobility worldwide.
Key highlights of the transaction include
The nearly 50% increase in the collateral pool size compared to MPOWER’s first securitization reflects strong year-over-year growth and demonstrates the company’s commitment to establishing a consistent presence in the asset-backed securities (ABS) market.
Despite an expanded deal size and prevailing bond market volatility, all three bond classes were oversubscribed, showcasing investor confidence in MPOWER’s credit portfolio and the growing demand for global graduate STEM talent in North America.
Several investors from the 2024 transaction participated again in MPOWR 2025-A, alongside new investors broadening the investor base.
Deutsche Bank Securities Inc. acted as Structuring Agent and Joint Bookrunner, with Goldman Sachs & Co. LLC serving as Joint Bookrunner.
Strong demand amid evolving market conditions
Amid macroeconomic uncertainty, MPOWER claims to be witnessing growing demand from Indian graduate students seeking higher education in the US and Canada. MPOWER’s fixed-rate, US dollar loans aim to provide these students financial certainty and peace of mind in fluctuating currency and interest rate environments.
“Investors recognise 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,” Manu Smadja, Chief Executive Officer, MPOWER, said.