Salmon Group raises $100M to support its PHL expansion

SALMON Group Ltd has raised $100 million from its latest fundraising round to support its continued expansion in the Philippines.

The Southeast Asian financial technology company raised $40 million from equity financing and $60 million via a public bond issuance, with both transactions being oversubscribed, it said in a statement on Monday.

“The dual-tranche structure — combining equity and public debt — diversifies Salmon’s funding base and positions the company for sustained balance sheet growth while maintaining a disciplined approach to capital management.”

The proceeds will be used to accelerate Salmon’s growth in the Philippines, it said. It operates in the country through neobank Salmon Bank (Rural Bank), Inc. and financing company Salmon Finance, Inc.

“This round is validation of what we have been building — an always-on bank and financial services super-app for every Filipino, run with discipline and a long-term mindset,” Salmon Co-Founder Pavel Fedorov said. “We are proud to have some of the world’s most respected investors joining us for this next chapter of growth. The capital will allow us to move faster on every front: more products, more reach, even greater capitalization of Salmon Bank, and better experience for our customers.”

Broken down, the $60-million equity financing component features US-based venture investors led by Spice Expeditions and participated in by Washington University Investment Management Co., Moore Strategic Ventures, FJ Labs, and other existing investors of Salmon.

Proceeds will be used for 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 and Salmon Bank Chairperson Raffy Montemayor said last year they want to bring their bank’s total capital to P2 billion before the end of this year as it plans to apply for a thrift banking license. Its total capital was at P1.6 billion as of end-March.

Meanwhile, Salmon also raised $40 million from a public bond issuance under its existing $150-million Nordic bond program priced at an effective yield of 13.7%. This came amid volatile global market conditions.

The bond proceeds will support the continued growth of Salmon’s lending portfolio, it said. — A.M.C. Sy