Prodigy Finance raises $ 1 billion in debt financing


Prodigy Finance, a pioneer in cross-border financing, announces that it has raised US $ 1 billion in the last twelve months in available debt financing (“financing”).

The funding, which includes a number of leading financial institutions, will allow the company to expand its innovative global lending model, which supports high-potential students from 150 countries.

Prodigy Finance Founder and CEO Cameron Stevens said, “The world is increasingly global and connected, but the banking industry has not kept pace. Traditional lenders are bound by local legal constraints, local data, and local repayments and collections, which tie an applicant’s credit profile to their location. For example, if you were born and live in the United States, you will have more choice and better access to financial services and credit. However, if you were born in Ghana and want to study abroad, you are more likely to be unbanked. We have worked hard over the years to change that. Our global credit model has enabled us to help international students with limited or no funding options access life-changing opportunities and become the next generation of leaders across the globe.

The financing consists primarily of US $ 900 million institutional debt facilities with US, European and Asian lenders, including Deutsche Bank, Goldman Sachs, M&G Investments and Sumitomo Mitsui Banking Corporation. Other investors include schools, family offices and high net worth individuals participating in Prodigy Finance’s international bond program distributed by Credit Suisse.

Stevens added: “We set out to prove and develop our borderless platform and this capital contribution demonstrates its success. The financial services industry will become more global in its outlook and we are leading the charge as we grow our business. It could transform the lives of the 258 million1 people living outside their home countries, as well as 3.2 billion2 of the middle class population who want to access the opportunities offered by a world-class education.

Prodigy Finance offers study loans to international students attending the best universities in the world. Funding options are particularly limited for these students, even more so for those living in emerging markets. The company’s unique global credit model is designed to assess applicants’ loan affordability on many variables, including projected income and academic acceptance, among others, rather than historical credit. While technology makes it easier to process and secure online claims around the world.

Prodigy Finance student borrower Sharon Wandill said that “my life changed completely the moment I stumbled upon Prodigy Finance, because it was literally the difference between me going to school or not.”

The company started out funding programs at the world’s top 100 business schools and over the years has expanded to other countries as well as disciplines such as engineering, public policy, law and health sciences. Engineering has been identified as a key growth sector, especially among students from Brazil, Russia, India and China (BRIC), who tend to study abroad and gain international exposure. In 2016/17, the United States hosted 1.078 million international students, whose most popular field of study was engineering, followed closely by business and management (engineering: 230,711 students; business and management : 200,754 students) 3. Unlike their business peers, engineering students are generally younger, with less work experience, and therefore have less savings and a greater need for financial assistance.

Today’s funding allows the company to expand its offering, particularly in the engineering field and in US universities and colleges, including those ranked by US News & World Report3. The Prodigy Finance platform now supports 245 specific engineering schools and 2,222 courses4, including electrical and computer engineering, data analysis, information systems and industrial, chemical and nuclear engineering, among others; with the option of 10, 15 or 20 years of loan term and without the need for collateral, co-signer or guarantor. The funding also demonstrates that a strong debt finance environment still exists for UK companies like Prodigy Finance.

London Business School Associate Director of Financial Aid Helen Foley said “Access to finance from Prodigy Finance is very important to London Business School and to our students. With students from over 100 countries, diversity is at the heart of everything we do. We recruit the world’s best talent for our programs. Prodigy Finance’s innovative, community-based approach to borderless student loans provides the financial support many of our students need to start their journey ”.

The financing also allows Prodigy Finance to offer a refinancing product to international graduates of American schools seeking to reduce their financial costs. These former students previously had limited options available to them, and Prodigy Finance’s new refinancing product gives them the ability to lower their interest rate, consolidate multiple student loans, release their co-signer, and choose from loan terms. flexible loan. Refinancing option is available to eligible international graduates who reside in the US or UK

To date, Prodigy Finance has helped over 11,200 students from 132 countries borrow over US $ 538 million; the majority of whom (89%) had no other access to funds.

Source link


About Author

Leave A Reply