Finexia completes first tranche of A$50M Securitised Note Issuance

Finexia Financial Group Limited (ASX:FNX) (the ‘Company’) is pleased to announce it has successfully completed the first tranche of a securitised note issuance through debt capital markets specialists, Income Asset Management Group (ASX:IAM). A total of A$25 million was raised and is to be deployed exclusively to the Finexia Childcare Income Fund.

The funds raised will be utilised to meet the current approved funding demands within the Finexia Childcare Income Fund. The Fund is designed to generate enhanced income returns for investors through the provision of financing solutions to experienced and successful childcare operators to open, trade-up, acquire and construct childcare centres across Australia.

This is a significant milestone in the Company’s transformation as specialist private credit provider. The issuance is a genuine show of investor confidence in Finexia’s ability to write sound credit, coupled with its deliberate focus on financing the burgeoning childcare and early learning sector. Adding to this sentiment was the fact investor demand for the issue was high. The issuance proceeds allow the Company to expand its overall loan book in step with its pursuit of business activities exposed to revenues that are deemed recurring in nature.

"We are excited to secure this initial $25 million investment through the partnership with Income Asset Management (IAM). It will provide the immediate financial resources to meet the existing pipeline of credit demand and further accelerate growth in the Childcare loan book to our short-term target of A$100 million AUM” said Finexia Managing Director, Neil Sheather.

The Company is intent on utilising the full A$50M issuance via a further tranche. Moreover, through its partnership with IAM, Finexia is confident it is well placed to maintain the current velocity in growth of its loan book exposure to the childcare and early learning sector.

Authorised for release by the Board of Directors

Neil Sheather

Managing Director

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