Salmon group raises $88 million from latest funding round

Salmon Group Ltd., which operates the Rural Bank of Sta. Rosa, Laguna, or Salmon Bank, on Tuesday said it has raised from its latest fundraising round, which the company plans to use to double down on its commitment to boost access to credit in the country.

The latest funding transaction includes the $60 million drawdown under a three-year $150-million Nordic bond framework agreement, marking the first issuance of its kind by a technology firm out of Southeast Asia.

It also includes $28 million of new equity raised from blue-chip US institutional investors, Antler Elevate, and existing shareholders of Salmon, which include International Finance Corporation, the sovereign wealth fund of Abu Dhabi ADQ/Lunate, Northstar, Back in Black Capital, and Filipino investors.

“With successful closing this transaction and with the strength of Salmon’s one-of-a-kind team, we will be taking Salmon to leadership positions in the financial services industry across Southeast Asia,” Salmon co-founder Pavel Federov said in a statement.

“We are grateful to new and existing investors for their trust and support of this vision,” he added.

The Salmon Group last year said it targets to grow its loan portfolio to $2 billion in the next three to five years, as it seeks to expand its customer base by catering to what it calls the “neglected market,” and stepping into other countries in Southeast Asia.

The bank currently has two branches — one in Sta. Rosa in Laguna, and the other in Bacoor, Cavite. It plans to expand with three more branches set to be located in Metro Manila, Cebu, and another in Mindanao, possibly in Cagayan de Oro or in Davao. –NB, GMA Integrated News