EFA Launches Credit Fund for Financial Institutions

Dec 2018
Global, December, 10 2018 - Private debt specialist EFA Group has launched a fund to provide credit to banks and financial institutions in developing areas of Asia and Eastern Europe.

The EFA Financial Institutions Debt Fund will provide short and mid-term financing to leading banks and financial institutions in emerging and developing economies, giving investors access to these rapidly expanding financial sectors. The investment strategy aims to deliver superior risk-adjusted returns thanks to the low default rates of targeted financial institutions and their attractively priced debt, according to a media release on Monday.

The Fund will exploit this disconnect by analysing the individual risk profiles of the financial institutions and differentiate these from the country risk factors. This approach should allow the Fund to target a net return up to 12 percent per annum using leverage.

Headquartered in Singapore

«EFA has deep experience in credit and direct lending in these markets, said Kashama Pascal Nyangombe, who will manage the fund. He is the head of the group’s financial Institutions investment strategy and responsible for deal origination, structuring and portfolio management.

EFA Group is an independent asset manager specializing in private debt strategies, with a focus on real economy businesses. Headquartered in Singapore, the Group provides alternative financing solutions to enterprises in Asia, Middle East, Europe and Africa and currently has over $1 billion of assets under management.

Director at UBS

Nyangombe has over 18 years of financial services experience, including in emerging and frontier markets. He headed Corporate and SME banking units at leading African banks and previously was a Director at UBS.

«Our portfolio selection includes a rigorous counterparty selection and due diligence process, in which we analyze the country risks, conduct in-depth reviews of local banking regulations and examine the fundamentals of each bank or financial institution,» he added.

Microfinance Organization Georgia

One of the Fund’s early investee firms will be JSC MFO Crystal, the largest microfinance organization in Georgia serving more than 77,000 clients made up primarily of microentrepreneurs and farmers. The Fund will provide a senior loan agreement to MFO Crystal, who will use the financing to provide credit to micro and small enterprises, creating jobs and supporting the development of tourism, agriculture and service sectors.

Source : finews.asia

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