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Zip Co secures US$300M funding facility
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Zip Co secures US$300M funding facility

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  • Zip Co priced a US$300 million securitisation transaction to establish its first asset-backed security issuance for its US division.
  • The transaction delivers lower funding costs and broadens the company's investor base to support ongoing operational expansion.
  • Additional capital capacity strengthens liquidity ahead of the company's peak second-quarter trading season.

Zip Co (ASX:ZIP) has priced a US$300 million securitisation transaction to secure its first asset-backed security facility in the US market.

The new funding deal carries a weighted average margin of 143 basis points over the US 2-year Treasury rate.

"We are pleased to establish this new US$300 million ABS facility, further strengthening our funding platform, broadening our institutional investor base and supporting our continued growth in the US," said Zip Co CFO Gordon Bell.

Fitch assigned senior notes in the transaction a AAA rating, with the facility scheduled to settle on or around 1 September 2026.

Following the announcement, the Zip Co share price was up at $2.64.

The Australian fintech company continues to expand its buy-now-pay-later services across key international retail channels.

Management noted that credit risk management discipline helped secure terms ahead of expected demand in the second quarter.

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