Global law firm Ashurst acted as counsel to Citibank N.A., Hong Kong Branch as the Senior Noteholder on establishing a securitisation warehouse facility backed by small and medium-sized enterprises ("SME") loans originated by one of Singapore's leading SME digital financing and credit investment platforms.
In Asia, receivables especially those relating loans to SMEs originated on digital lending platforms are fast becoming a popular form of asset backed lending / securitised assets. SMEs make up more than 96% of all Asian businesses but face challenges getting access to finance. Securitization plays a significant role in allowing digital lending platforms to raise capital to address this unmet need.
According to the e-Conomy Southeast Asia Report 2021 – an annual report produced by Google, Temasek and Bain & Company, the usage of digital financial services is witnessing strong growth in Southeast Asia (SEA). A trend mostly driven by digital payments and digital lending adoption. It is expected that continued shifts in consumer and merchant behaviour, matched with strong investor confidence, is ushering SEA into its "Digital Decade".
The transaction was led by Singapore partner Jean Woo, supported by partner Evan Lam, counsel Cara Stevens, associates Jake Sng, Jermaine Ng and Thines Pandiyan, and New York partner Margaret Sheehan.
