IFS Capital has signed its inaugural S$79 million MSME loan securitisation programme, with financial close expected in October 2026.

Upon financial close, the transaction will enable IFS Capital to recycle capital that would otherwise remain committed to existing loans until maturity. This will allow the Group to redeploy capital into new lending for micro, small and medium-sized enterprises (MSMEs).

IFS Capital’s private credit business provides working-capital financing, asset-based lending and property-secured financing to MSMEs across Singapore, Malaysia, Thailand, Indonesia and Hong Kong. Group lending assets stood at S$475 million as at 30 June 2026.

Just as importantly, the transaction brings together two established institutional partners: CapitaLand Investment (CLI), which will subscribe for the full aggregate principal amount of the senior notes offered by the issuer on the first issue date, and DBS Bank Ltd, which acted as sole arranger.

A New Channel to Support MSME Lending

The transaction is backed by a defined pool of existing MSME loans secured by Singapore real estate. Under the programme, the loan pool will be sold to a special purpose vehicle, which will fund the purchase through the issuance of senior, mezzanine and subordinated notes with a four-year tenor.

IFS Capital will retain the mezzanine and subordinated notes, which rank behind the senior notes. The Group will also continue to service the underlying loans, with borrower relationships unaffected.

The transaction marks an important step in IFS Capital’s objective of developing securitisation as a recurring funding and capital-management channel across different product portfolios.

“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, IFS Capital

CapitaLand Investment Subscribes for Senior Notes

In line with its real estate private credit strategy, CapitaLand Investment (CLI) will subscribe for the full aggregate principal amount of the senior notes offered by the issuer on the first issue date.

The senior notes are backed by a diversified portfolio of real estate assets in Singapore and provide regular income over the investment period. CLI’s participation is an important element of IFS Capital’s inaugural securitisation transaction.

“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 & Head of Credit - Private Funds, CapitaLand Investment

By retaining the mezzanine and subordinated notes, IFS Capital’s interests are aligned with those of the senior noteholder for the life of the pool.

DBS Acts as Sole Arranger

DBS Bank Ltd acted as sole arranger for IFS Capital’s inaugural securitisation, bringing together IFS Capital and CLI for the transaction.

“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.” Clifford Lee, Managing Director and Global Head of Investment Banking, DBS Bank

Through this inaugural programme, IFS Capital is establishing a new capital-management channel that supports the continued deployment of capital into MSME lending.

Read the full press release here