A Mintos lending company operating in Sub-Saharan Africa has secured $9m (£6.6m) in new funding for specialty finance operations in Botswana.
ExpressCredit Group, which is listed on Mintos’ European lending marketplace, said the Botswanan operations will enable it to diversify its financial resources and partially refinance its existing credit facilities funded by Mintos investors.
The funding commitment was provided by US alternative asset manager Finacity Corporation and consultancy firm Africa Growth Capital.
ExpressCredit Group said that it will continue to provide attractive investment opportunities to retail investors by listing personal loans of ExpressCredit Botswana on the Mintos platform.
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“Botswana is set for strong economic growth, and we anticipate the demand for consumer loans will increase with this new funding facility,” said Charlotte Mathula, chief executive at ExpressCredit Botswana, said in a blog post on Mintos’ website.
“The new loan funding program is well-timed to diversify funding opportunities and support ExpressCredit and its ambitious growth plans in Botswana. It will enhance our liquidity and further strengthen our market position as one of the leading specialty finance providers.”
Last month, Mintos has downgraded the risk scores for eight loan originators on its marketplace and added scores for recently-added firms following a second-quarter review.
In September, it reached the €7bn (£5.97bn) lending milestone.