Asia Digest: Validus, Citibank set up $100m financing facility; M&G, ESR beef up Japan partnership

Photo by Pepi Stojanovski on Unsplash

Validus and Citibank have launched a $100-million facility that seeks to finance SMEs in Southeast Asia while M&G Real Estate and ESR Group announced a long-term partnership in Japan.

Validus, Citi set up $100m SME financing facility

Validus, a Singapore-based SME financing platform, has partnered with Citibank to establish a $100-million securitisation facility that is collateralised by SME loans originated by Validus in Singapore, according to an announcement.

The facility, which seeks to drive SME financing in Singapore and Southeast Asia, was launched in the second quarter this year. The collaboration between a large global bank and a fintech was the first of its kind in the region, the announcement added.

Validus said it has doubled its borrower base in Singapore and grew its loan book by 60% since the facility was established in Q2.

Validus is currently raising its Series C equity round for an undisclosed amount. The company said the combination of the securitisation facility and Series C equity funding will further drive its expansion plans as it starts to introduce neo-banking products in other Southeast Asia markets.

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

M&G, ESR beef up Japan logistics properties partnership

M&G Real Estate, the real estate fund management arm of UK-based M&G Investments, has formed a long-term partnership with Hong Kong-based real estate platform ESR to develop a portfolio of logistics properties in Japan.

M&G intends to deploy $350 million in equity into the partnership that will focus on logistics properties across Tokyo, Osaka, and Nagoya. The partnership will expand the ESR-managed and M&G-invested logistics portfolio to over $1 billion in gross asset value.

As the inaugural project under this partnership, M&G will hold a majority interest in the development of a state-of-the-art logistics facility in Nagoya, Nagoya Minami 2 Distribution Centre, on behalf of its M&G Asia Property Fund, with ESR managing the facility upon completion.

The project will commence construction in November 2022, with completion targeted for October 2023.

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief
Subscribe to Newsletter

You have 3 free stories remaining for the month. Register to continue reading our content