F88 continues to successfully raise 50 million USD from Lending Ark Asia fund

This loan worth more than 1,200 billion VND is the second loan that F88 received from the Lending Ark Asia fund after the first loan also worth 50 million USD in November 2022, bringing the total loan amount that Lending Ark granted to F88 to 100 million USD.

“The new credit facility will be used to accelerate F88’s business growth plan,” said Phung Anh Tuan, Chairman and CEO of F88. “ With this capital, F88 aims to expand the provision of financial services that meet service standards, are easy and transparent to the underbanked customer base in Vietnam. F88 strongly believes and expects that its products and services will continue to help improve the financial capacity of customers, thereby contributing to the overall development of the Vietnamese economy.”

f88 continues to successfully raise 50 million USD from lending ark asia image 1 — F88 successfully raised 50 million USD (Photo TL)

On the part of Lending Ark Asia, this is a unit that always applies a strict and comprehensive credit appraisal process to its loans, and is especially careful when evaluating contents such as market potential, business strategy, risk management capacity, legal compliance capacity, service quality, community contributions... in the business and operational activities of the enterprise. The approval of an additional loan limit of 50 million USD for the second time has demonstrated the trust and expectation that Lending Ark Asia has for F88 in particular and for the potential of the subprime lending market in Vietnam in general.

In the first half of 2023, despite facing many challenges, F88's business activities still maintained stable growth. Revenue in the first 6 months of 2023 increased by 52% compared to the same period in 2022. With the provision of diverse services, the total number of customers as of June 30, 2023 increased by 30% compared to the end of 2022. The customer satisfaction rate after transactions (CSAT) reached 89%. The ratio of operating expenses (CIR) (operating expenses excluding provisions and bad debt write-offs) to total operating income (excluding financial expenses) in the first 6 months of 2023 decreased by 16% compared to the same period in 2022. The company also paid VND 1,250 billion in principal and interest on bonds to investors on time. At the same time, the debt-to-equity ratio (D/E ratio) is maintained safely around 1.0 times. These positive indicators are the basis for Fiin Ratings to continue to maintain the credit rating at BBB- for F88, even in the current volatile market situation. Explaining the unprofitable business results in the first half of 2023, Mr. Tuan shared that it was largely due to the increased risk costs when the company applied a rather cautious policy of setting aside bad debt reserves compared to usual. Regarding market potential, based on positive economic forecasts for the second half of 2023, in addition to maintaining stable business growth, F88 expects to seize opportunities to expand its customer base to continue to accelerate in the coming time.

Lending Ark Asia Secured Debt Funds is the leading private credit strategy advisory arm of CLSA Capital Partners, headquartered in Hong Kong. Lending Ark Asia approves and manages investments in the retail lending space across Asia, Australia and New Zealand. With a total investment value exceeding US$1.1 billion, Lending Ark has established itself as a trusted international partner in the financial industry in the region and globally.

CLSA Capital Partners, the manager of Lending Ark Asia, is a leading investment and capital management organization in Asia. Established in 1995, CLSA manages a diversified portfolio across various sectors, including credit, transportation and real estate. With offices in Beijing, Hong Kong, Mumbai, Seoul, Singapore, Shanghai, Sydney, Tokyo and London, CLSA is well-positioned to finance the expansion and growth plans of its partners.

About F88
F88, founded in 2013, is the leading chain of convenient financial stores in Vietnam today. The personal financial services that F88 is focusing on providing include mortgage loans, insurance distribution and many other convenient services. With the principle of putting customers first and always committing to transparency in all activities, F88 is proud to serve millions of individual customers in Vietnam who do not have a bank account or are not eligible for bank loans. For more information about F88, please visit www.f88.vn

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