Fintech firm Validus has entered an agreement with Citi to acquire its small business banking loan portfolio.
Citi Singapore’s small business banking unit – CitiBusiness – will transfer its loan portfolio to Validus, according to a statement, with the deal expected to be completed by April 2022.
«The sale of the CitiBusiness loan portfolio in Singapore follows our previous announcement to wind down our small business banking unit after a strategic review,» said Citibank Singapore's head of mortgage & CitiBusiness Roy Phua.
«Our priority is to ensure a smooth transition of our customers and loans to Validus, who we believe can continue to serve them and meet their needs.»
Value Creation
The new assets mark Validus’ first acquisition of an established bank’s loan portfolio and customer base with expectations of «value creation» for existing Citi clients with access to «additional financing solutions to grow their business, financial services such as business accounts, cards and money transfers, and tools to manage their business finances in a smarter and more efficient way».
Singapore-headquartered Validus was founded in 2015 and is focused on SME growth financing in Southeast Asia. Since its establishment, it has disbursed over $1 billion across 50,000 loans to small businesses in Singapore, Vietnam, Indonesia and Thailand.
