FC ABS

pending

The proposed investment involves participating in the senior and/or mezzanine tranches of an off-balance-sheet asset-backed security (ABS) to be issued by a Special Purpose Vehicle (the SPV or the Borrower). The SPV will be established to pool a diversified, collateralized pool of SME receivables originated by First Circle (FC or the Company), as the originator and servicer, a wholly owned subsidiary of Carabao Capital Global Pte Ltd, the Sponsor. The investment is a financing package of up to US$110 million comprising: i) an IFC A loan of up to US$20 million in the senior tranche, ii) an IFC C loan of up to US$10 million in the mezzanine tranche, and iii) mobilization of up to US$80 million to expand access to credit for underserved micro, small, and medium enterprises (MSMEs) in the Philippines. Commitments are envisaged to be executed in multiple tranches, with IFC’s participation in the first tranche of up to US$15 million across both senior and mezzanine tranches.The proposed investment is anticipated to be structured as an up to four-year securitization facility, with a roll-over option available at the end of each of the first three years. The investment will be made via a newly formed special purpose vehicle (SPV) in the Philippines, subject to legal and regulatory due diligence. This investment would mark IFC's first securitization in the Philippines' market, contributing to the deepening and development of domestic capital and funding products.