SME lender Validus and Citi set up US$100 million securitization facility

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Southeast Asian SME growth finance platform Validus and Citibank have announced the creation of a US$100 million securitization facility. This will be secured by SME loans issued by Validus in Singapore.

In March this year, Validus announced that it had signed an agreement to acquire CitiBusiness’s loan portfolio in Singapore.

The facility is also backed by First Plus Asset Management, a Singapore-based multi-asset investment manager specializing in structured credit and equities in Asia.

Since inception of the facility in the second quarter, Validus said it has doubled its borrower base in Singapore and increased its loan portfolio by 60% across the group over the same period.

Validus added that it has also increased its monthly volumes more than 8 times and tripled its loan portfolio in the past 24 months.

Since its launch in 2015, Validus has disbursed over US$1.6 billion on more than 65,000 small business loans in Singapore, Vietnam, Indonesia and Thailand.

The company is currently raising its Series C funding round for an undisclosed amount.

The combination of the securitization facility and Series C equity financing will further boost Validus’ expansion plans as it begins to introduce neo-banking products to other Southeast Asian markets.

The company is backed by FMO, Vertex Growth, Vertex Ventures Southeast Asia and India, AddVentures by SCG, K3 Ventures, Openspace Ventures and VinaCapital Ventures.

Milena Naitoh

Milena Naitoh

Milena Naitoh, Business Development Manager at Validus, said:

“As Validus continues to expand its position as the leading all-in-one SME finance platform in Southeast Asia, this securitized lending structure, coupled with a diversified finance and product strategy, will allow us to grow on a much larger scale.

We are honored that Citi has chosen to partner with us on this landmark securitized loan transaction with a fintech start-up in Southeast Asia, and we plan to replicate this transaction playbook in other markets.

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