Lendable Inc., the leading technology-enabled funding intermediary to non-bank lenders, have announced their second round of institutional investment in the innovative program, Multi-Originator Segregated Portfolio 2 (MOP2) – an initiative that will expand access to credit across sub-Saharan Africa. Lendable Inc. provides risk analytics for lenders and originators of debt in developing markets, this means that solution to external funding for African SMEs.
MOP2 is Lendable’s second fundraiser of secured pass-through securities. A pass-through security is a pool of fixed-income securities backed by a package of assets. The program, therefore, is backed by the consumer, SME, solar and productive asset loans originated by sub-Saharan alternative lenders using mobile payment technology. This portfolio will be used to purchase existing loan receivables or make secured loans directly to alternative lenders, who lend to small and micro enterprises and low-income consumer borrowers in Kenya, Uganda, Nigeria, and Ghana.
Most growing alternative lenders in African markets will receive fair credit and flexible interest payment mode.
With its platform that provides asset-backed funding facilities to fast-growing alternative lenders across African markets, including off-grid energy companies, small and medium-sized enterprise (SME) lenders and asset finance companies, this is no doubt a step towards development and growth for the African Continent.
Over the years, small and medium scale enterprises in Africa have faced challenges getting external funding. The program is expected to facilitate access for alternative lenders to receive secured payments
“MOP2 marks a significant milestone towards Lendable’s goal of providing fair credit to the under- and unbanked consumer and SME market segment in frontier markets. We are excited that we were able to structure MOP2 to allow institutional investors to participate in our mission and to further diversify our investor base in this way. We are also very excited about the partnership with the Dutch Development Bank FMO, which provides an interesting template for cooperation between Lendable and other DFIs in the future,” commented Daniel Goldfarb, Lendable’s CEO, and co-founder.
