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LendingClub's share price rose by 3.4% on April 14th. The company's largest intraday gain (since the IPO) came after the announcement of a deal with Citigroup. The deal with Citi is to provide over $150m worth of loans to underserved borrowers.
Key partnerships are both increasing the supply in loans for P2P platforms and confidence in their potential for growth.
Shares of LendingClub climbed 3.4 percent to $18.65 at 10:13 a.m. in New York, the biggest intraday gain since March 23. The stock has increased 25 percent since the San Francisco-based company’s initial public offering in December. LendingClub will work with Citigroup to provide as much as $150 million in affordable loans to underserved borrowers, the companies said Tuesday in a statement. The loans will be issued by WebBank, based in Utah, and purchased by Varadero Capital via a credit facility from New York-based Citigroup. “It is important that we help increase access to financing alternatives for American families,” said John Heppolette, co-head of Citi Community Capital, the Citigroup unit focused on providing community development loans and investments. “This partnership is a direct response to that need and will help provide a viable source of responsible credit.”
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