Latvian group ExpressCredit obtains new consumer loan financing from US investor
ExpressCredit Group (ExpressCredit), a credit company, has acquired $ 9 million (approximately € 7.74 million) in new funding for specialist finance operations in Botswana.
As mentioned in an update, this allows the company to diversify its financial resources and “partially refinance its existing credit facilities funded by Mintos investors.”
As noted in the announcement, the credit facility was offered by a US-based alternative asset manager “providing loan-to-asset solutions for borrowers seeking financing of $ 5 million to $ 35 million.”
As confirmed in the update, the funding commitment was facilitated by Financial Company, a key player in the structuring and delivery of asset-backed working capital financing solutions, and Africa Growth Capital, a financial advisory firm.
Charlotte mathula, CEO of ExpressCredit Botswana, said:
“Botswana is poised for strong economic growth, and we expect the demand for consumer loans to increase with this new financing facility. The new loan financing program is timely to diversify financing opportunities and support ExpressCredit and its ambitious growth plans in Botswana. This will improve our liquidity and further strengthen our position in the market as one of the leading providers of specialist finance. “
As confirmed in the announcement, the ExpressCredit group will continue to offer “attractive investment opportunities to retail investors by listing ExpressCredit Botswana personal loans on the Mintos platform”.
Established in 2016, the ExpressCredit group is a consumer credit company headquartered in Latvia and operating in several markets in sub-Saharan Africa, including Namibia, Zambia, Botswana and Lesotho.
With over 60 different branches, ExpressCredit operates a multi-channel lending platform for government and private sector workers “underserved by traditional financiers”. It provides alternative online lending solutions in countries “driven by offline lending options while maintaining compliance with KYC and other regulatory requirements”.
The group also has agreements with private companies, unions and government institutions (deduction codes) to “allow its entities to directly debit the salary repayments of borrowers.”
Some of the equity investors in the ExpressCredit group and Mintos “overlap,” the announcement revealed.