FMO mulls $5m mezzanine loan for Lendable’s fintech credit fund

Jakarta, Indonesia. Photo by rohiim ariful on Unsplash

Dutch development bank FMO is considering a five-year mezzanine loan of $5 million for a fintech credit fund targeting African and Asian businesses by emerging market debt provider Lendable Inc.

FMO said in a proposal dated October 26 that the planned investment in Lendable’s FinTech Credit Fund I will “enable financial inclusion of the underserved MSMEs [micro, small and medium enterprises]”.

The fund has a $100 million target and will finance the growth of 25 lending companies across Africa and Southeast Asia, Lendable said in a statement in May 2019.

“Through these lending companies, the fund will finance upwards of 40,000 small businesses, 200,000 solar home systems, and 300,000 consumer loans,” it said.

The fund invests in senior-secured and off-balance sheet debt facilities to fintech companies in the selected regions. These facilities will be secured using a suite of structural enhancements Lendable developed to allow it to operationally effect control of inbound cash, the company added.

Established in 2014, Lendable operates a capital markets platform to provide structured finance to alternative lenders across the frontier and emerging markets, including off-grid energy companies, MSME lenders, consumer lenders and asset finance companies.

Lendable claims it has deployed over $50 million to fintech companies enabling financial inclusion.

In May this year, the platform provided a $10 million funding for Indonesian startup KoinWorks to help with the latter’s support of local SMEs. This was the first transaction by Lendable in Asia.

Meanwhile, FMO earlier supported Lendable’s initiatives to support alternative lenders in Africa in 2018.

The Dutch government’s MASSIF fund, managed by FMO, then gave a $450,000 convertible grant to Lendable, which was then expected to unlock an additional $4.5 million funding from commercial investors, the fintech asset manager said in another statement.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.