SALMON Group Ltd has secured $140 million (P8.8 billion) in financing to support the continued expansion of its lending business in the Philippines.
Of the total amount, $90 million was committed by Spice Expeditions, Washington University Investment Management Co., and Moore Strategic Ventures, while $50 million was from bond proceeds.
This will fund the scaling of its profitable lending products like Salmon Credit Line and in-store lending, as well as the launch of new products, including loans for motorcycle and micro, small, and medium enterprises, it said.
“Everyday financial services come with unnecessary friction for many Filipinos. We’re removing these barriers and building innovative products with the reliability and security customers expect in today’s world. We are doubling down on the opportunity in the Philippines as we believe deeply in its scale and in the importance of focus to deliver a differentiated execution,” Salmon Co-Founder Pavel Fedorov said in a statement on Monday.
“This financing lets us do more: extend banking and credit access to more Filipinos, roll out new products, and keep raising the bar for the financial services industry in the country. We are grateful to our existing investors for backing the next stage of our mission.”
Salmon Group operates in the Philippines through Salmon Bank (Rural Bank), Inc.; its financing company Salmon Finance, Inc.; and also offers various financial products via the Salmon app.
This latest funding round follows a $100-million round in April, with $40 million coming from equity financing and $60 million via a public bond issuance. Proceeds of the earlier round were earmarked for its product and distribution network expansion in the Philippines, as well as to beef up Salmon Bank’s capitalization and grow Salmon’s balance sheet capacity.
Salmon Co-Founder Raffy Montemayor said last year that they want to bring Salmon Bank’s total capital to P2 billion before the end of 2026 as it plans to apply for a thrift banking license.
Salmon Bank’s assets stood at P8.21 billion at end-June, ranking at 10th place among rural banks, with stockholders’ equity at P1.67 billion, based on its balance sheet.
Deposit liabilities were at P6.28 billion as of June. Its net loan portfolio stood at P2.62 billion, while its gross loan portfolio was at P3.43 billion. — Aaron Michael C. Sy