Big banks bond with CommonBond for $750m lending spree
New York-based CommonBond has signed $750 million in lending capacity from Goldman Sachs, Citibank, Barclays, BMO, and ING.
Not content with name dropping five famous banks in style, the firm says the financings enable it support the growth of its refinance and in-school student lending businesses. CommonBond has closed over $4 billion in financings to date. The name’s Bond. Big billions Bond.
CommonBond CEO and co-founder David Klein says: “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 programme.”
He adds: “Our goal is to make student loan debt one less thing to worry about, and these financings help us deliver that.”
There are no specifics but these funds will be used to introduce new products in 2019 to help students pay for school.
The company was launched across the US in 2013. In December 2018 it acquired NextGenVest, an artificial intelligence (AI) powered financial platform for “Gen Z”.
CommonBond says it has funded over $2.5 billion in loans, partnered with over 300 corporate clients, and currently has over 100,000 members.
It also funds the “education of a child in need”, through its partnership with Pencils of Promise.