IFS Capital Limited has announced the signing of its first loan securitisation programme, valued at S$79m, backed by a portfolio of micro, small, and mid-size enterprise (MSME) loans secured by Singapore real estate. DBS Bank Ltd acted as the sole arranger, whilst CapitaLand Investment subscribed to the senior notes, aligning with its real estate private credit strategy.
The transaction involves selling a pool of existing MSME loans to a special purpose vehicle, which will issue senior, mezzanine, and subordinated notes to fund the purchase. IFS Capital will retain the mezzanine and subordinated notes, ensuring alignment with senior note holders. The notes have a four-year tenor, with IFS Capital continuing to service the loans.
This initiative allows IFS Capital to recycle capital that would otherwise be tied up until loan maturity, enabling the redeployment into new MSME lending. Group CEO Randy Sim emphasised the importance of investor confidence in their underwriting and loan performance, stating, “We have structured the transaction in a way that aligns our interests with those of our investor for the life of the pool.”
CapitaLand Investment’s Managing Director, Arjun Pandit, highlighted the investment’s role in expanding their exposure to Singapore’s real estate private credit market. Clifford Lee of DBS Bank noted the transaction’s significance in advancing Singapore’s securitisation market.
IFS Capital’s private credit business, which spans Singapore, Malaysia, Thailand, Indonesia, and Hong Kong, reported lending assets of S$475m as of 30 June 2026. This securitisation marks a strategic step in developing a recurring funding channel, enhancing capital efficiency, and creating shareholder value.
