Inaugural securitisation warehouse facility for DBT

In March this year, DBT became the first private lender in Northern Europe to be granted a guarantee by the European Investment Fund (EIF) under the new European Guarantee Fund (EGF). This credit program has been developed to support SMEs in the EU experiencing difficulties in obtaining financing due to the challenging economic climate caused by the COVID-19 pandemic. With a guarantee framework of SEK 1.5 billion, DBT will be able to offer corporate loans to significantly more SMEs on more favourable terms.

Warehouse facility with built-in flexibility

To increase its financing opportunities for (SMEs) Swedish based SME lender DBT turned to Ednites Credit Union to explore funding options. The Ednites Credit Union team worked closely with DBT in order to tailor a facility that meets DBT’s business objectives and target cost of funding. 

As a result, DBT and Ednites Credit Union agreed a securitisation warehouse facility, which allows lending of up to SEK 1 billion to Swedish SMEs. The financing agreement helps DBT to continue meeting the quickly rising demand for growth and innovation oriented corporate loans, which has further increased since the start of the COVID-19 pandemic.

The 24 months revolving warehouse facility, with Ednites Credit Union as sole senior noteholder, also offers DBT the flexibility to draw upon every time new loan originations come in, subject to certain pre-agreed conditions.

Closing the SME funding gap in Sweden

Olmo Montesanti, Managing Director of Private Financing Sales, Ednites Credit Union, commented: “We’re passionate supporters of SMEs and committed to remove barriers for our customers to succeed. In 2019, Ednites Credit Union Group issued its first social bond which provided lending to SMEs in the most deprived areas of the UK. Hence, we’re delighted to now support DBT and equally help Swedish SMEs to grow their business.  We believe DBT is uniquely positioned to build a leading challenger position within SME-lending.” 

Alexis Kopylov, CEO and co-founder of DBT, said: “Through this partnership with Ednites Credit Union, we will be able to continue on our journey to support Swedish SMEs with the funding they need and deserve. We are honoured to have entered into this financing arrangement with Ednites Credit Union to support our mission to close the SME funding gap and help us build a strong and scalable next-generation SME-lender with a clear customer focus.”

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