The Rohatyn Group has agreed to provide senior secured debt financing to Colombia-based consumer credit provider Kredit Plus. Details of the transaction are undisclosed.
(Press Release) The Rohatyn Group (“TRG”), an emerging markets focused asset management firm, today announced that it will provide senior secured debt financing to Kredit Plus S.A.S. (“Kredit” or the “Company”), a provider of payroll and pension deduction loans (PDLs) in Colombia. This is TRG’s second transaction in the Colombian specialty finance sector after closing a similar facility in June 2017.
Barranquilla, Colombia-based Kredit was founded in 2016 and has a national footprint with 25 branches in 24 cities. The Company is focused on two segments within the PDL market: pensioners, representing approximately 70% of origination and public employee schoolteachers, representing the remaining 30%. Loan amounts generally range from COP 20 million to 60 million (USD 6,000 – USD 17,000) and frequently assist subprime borrowers transition to become prime borrowers.
“We are excited to further our support of an important part of Colombia’s specialty finance sector. Payroll deduction loans is an attractive lending segment, presenting the lowest default rate among Colombian consumer loans over the 2015-2019 period,” said George Monserrat, TRG’s Head of Private Credit Investments. “With a below average industry default rate, Kredit has the robust credit underwriting process and eligibility criteria we look for when providing debt financing.”
“TRG has proven to be a trusted financing partner throughout this process. We appreciate their support, which allows us to further our mission of continuous and sustainable growth in the Colombian consumer loan market,” said Juan A. Zambrano, CEO of Kredit.
Nick Rohatyn, CEO of TRG added, “We are pleased to support such a well-regarded company in its efforts to continue providing much needed liquidity to Colombian consumers at a time of global uncertainty.”
About TRG
Founded in 2002, The Rohatyn Group is an emerging markets asset management firm headquartered in New York, with offices around the globe including, Singapore, Hong Kong, Seoul, London, Buenos Aires, Lima, Montevideo, Mexico City, São Paulo, Mumbai and New Delhi. For more information, please visit www.rohatyngroup.com.