The renewed agreement could support up to US$8 billion in consumer loan volume over two years
CPP Investments will deploy up to US$2.2bn to buy consumer instalment loans from Affirm, deepening a structured-credit relationship that has already channelled nearly US$14bn of the fund’s capital into the company since 2019.
Affirm offers instalment payment products to consumers and merchants, said Paras Vira, managing director and head of Americas structured credit at CPP Investments.
He said Affirm's credit performance supported the decision to renew and expand the commitment, which is intended to generate returns for the CPP Fund on behalf of its contributors and beneficiaries.
CPP Investments is making the commitment through subsidiaries of CPPIB Credit Investments Inc. under a renewed 24-month forward-flow agreement, starting at US$1.7bn with the option to increase to US$2.2bn.
They expect the deal to support up to roughly US$8bn in consumer loan volume over the term.
The earlier purchases ran through forward-flow agreements and asset-backed securitizations.
Affirm lets consumers pay over time at checkout and reported US$46bn in gross merchandise volume over the 12 months ending March 31.
Its total funding capacity reached US$28.2bn as of that date.
