London-based Prodigy Finance, a cross-border fintech lending to postgraduate international students, has secured a funding deal from CPP Investments whereby the institutional investor is providing up to $500 million of financing through its wholly owned subsidiary CPPIB Credit Investments.
Prodigy Finance stated the deal will allow it to continue to meet growing demand for international student loans – with applications up 50% year-on-year – as well as accepting applications from students from a number of markets that were previously excluded due to funding eligibility restrictions last year.
These regions include China, Australia, Bangladesh, South Korea, Spain, Chile, Singapore, France, Germany, Italy, Japan and most of South America, and Prodigy said their addition means it can now lend to students and organisations from more than 120 countries.
The latest investment is on top of a $250 million facility Prodigy Finance agreed last year with development bank, the U.S. International Development Finance Corporation (DFC). The DFC funds will be used to grant loans to postgraduate students with a primary focus on low-income and lower-middle-income countries (minimum 50%) and women (minimum 30%).
Joel Frisch, head of global acquisition at Prodigy Finance, said: “We have always believed that talent is borderless and finance should be too, so we’re thrilled to now be able to support students from all these additional countries. In total we can now help students from over 120 countries worldwide and want to keep being a leader in helping global talent achieve its true potential.”
Prodigy Finance’s head of capital markets Neha Sethi added: “Achieving this important funding milestone is another step towards achieving our goal of helping over 25,000 students every year.”
Derek Jackson, managing director, head of European credit at CPP Investments, commented: “This financial commitment to Prodigy Finance is a great example of our ability to provide flexible funding solutions to complex business needs and fits well with CPP Investments’ credit strategy of investing our patient capital with leading partner organisations.”
Date published: 27 September 2021