Citi Partners Validus for US$100m SME Securitisation Facility
(5 September 2022 – Singapore) Citi and SME financing platform Validus and have partnered for a US$100 million securitisation facility collateralized by loans from small businesses originated by Validus in Singapore.
The facility is designed to extend credit to SMEs in Singapore and across Southeast Asia. The facility is supported by First Plus Asset Management, a Singapore-based multi-asset investment manager focused on Asia structured credit and equities. Validus is also raising its Series C equity round for an undisclosed value. The combination of the securitisation facility and Series C equity funding will support Validus’ plans for growth, which incorporates introducing neo-banking products in Southeast Asia.
The collaboration between a large global bank and a fintech is the first-of-its-kind in Southeast Asia in terms of deal and structure and was launched in early Q2 2022. Validus reported strong growth in loans in spite of the COVID pandemic and rising interest rate environment. In the last two years the group expanded monthly volumes by over eight times and tripled its loan book across the Group.
“This collaboration with Citi underscores the quality of our origination, credit portfolio management, strength and resilience of our business, in today’s market environment. With this evolution in our financing strategy, as well as the support of Citi as an established player in the asset-backed securities space, we are now even better positioned to support the growth of SMEs with accessible and effortless business finance” stated Validus Head of Corporate Development, Milena Naitoh.