IFS Capital has signed its inaugural S$79 million loan securitization program backed by a portfolio of micro, small and midsize enterprise loans secured by Singapore real estate. DBS Bank is serving as sole arranger for the transaction.
IFS Capital will sell a defined pool of loans from its existing MSME portfolio to a special purpose vehicle, which will finance the purchase by issuing senior, mezzanine and subordinated notes.
CapitaLand Investment will subscribe for the full aggregate principal amount of the senior notes issued on the first issue date.
IFS Capital will retain the mezzanine and subordinated notes, aligning its interests with the senior note investor over the life of the pool.
The notes will have a four-year tenor, and IFS Capital will continue servicing the underlying loans. Existing borrower relationships will not change.
The securitization will allow IFS Capital to recycle capital currently committed to loans through maturity and redeploy those funds into additional MSME lending.
The company plans to develop securitization into a recurring funding and capital management channel across multiple product portfolios.
IFS Capital’s private credit business provides working capital, asset-based and property-secured financing to MSMEs across Singapore, Malaysia, Thailand, Indonesia and Hong Kong.
Group lending assets totaled S$475 million as of June 30, 2026.
KEY QUOTES:
“A transaction like this rests on an investor’s confidence in how we underwrite and how our loans perform over time. We are pleased to have CapitaLand Investment as an investor in our first securitisation. We have structured the transaction in a way that aligns our interests with those of our investor for the life of the pool. Our intention is to make this a repeatable channel, with capital continuously being put back to work for MSMEs in the region.”
Randy Sim, Group Chief Executive Officer of IFS Capital
“This investment expands CapitaLand Investment’s exposure to Singapore’s real estate private credit market and advances our fund management growth strategy in the credit sector. We are pleased to partner with IFS, whose capabilities and market expertise complement CapitaLand Investment’s regional credit investment platform. The senior secured notes provide stable, risk-adjusted returns backed by a diversified portfolio of real estate assets. We continue to see compelling opportunities in real estate private credit across developed Asia Pacific markets.”
Arjun Pandit, Managing Director and Head of Credit, Private Funds at CapitaLand Investment
“This transaction demonstrates how securitisation can unlock institutional capital, enhance funding diversity and support the flow of capital to the real economy. DBS is pleased to have brought together IFS Capital and CapitaLand Investment in this inaugural transaction. Beyond its significance for the parties involved, it marks an important step forward in the continued development of Singapore’s securitisation market.”
Clifford Lee, Managing Director and Global Head of Investment Banking at DBS Bank
