Absa has invested in Lendable’s $255 million MSME Fintech Credit Fund 2 (LMFCF2), marking the first time an African bank has joined this emerging-markets private-credit initiative.
Absa invests in $255 million fund as final close is reached
The bank purchased senior notes and extended a subscription line to support capital deployment. LMFCF2’s final close at $255 million was achieved despite oversubscription, reflecting strong demand for the fund. The strategy targets asset-backed financing for financial-services firms operating across Africa, Asia, and Latin America, with a focus on expanding credit access for underserved micro-, small-, and medium-sized enterprises (MSMEs) and individuals. The senior tranche carries an investment-grade rating.
Absa’s participation broadens the investor base, which has historically included development finance institutions, family offices, and foundations.
“The significance of this transaction extends beyond the investment itself. It demonstrates how African financial institutions can participate more actively in global private credit markets and work alongside international investors to channel capital into businesses serving the real economy,” said Shyam Ganda, Lead Specialist: Banking at Absa Corporate and Investment Banking (pictured).
Lendable’s technology-driven underwriting process, powered by its proprietary Maestro risk engine, evaluates and monitors asset-backed loans across the portfolio.
LMFCF2 is part of Lendable’s broader initiative to extend credit to technology-driven financial-services firms serving underserved customers in both developed and emerging markets. The fund’s focus on asset-backed lending aligns with its mission to reduce financing barriers for MSMEs and individuals in regions where traditional banking options remain limited.
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