SALMON Group Ltd. has raised $88 million from its latest funding round to expand its operations in the Philippines and across Southeast Asia.

The funding transaction was comprised of a $60-million drawdown under a three-year $150-million Nordic bond framework agreement and $28 million in fresh equity raised from US institutional investors, Antler Elevate, and existing shareholders of Salmon.

“The list of existing investors includes the International Finance Corporation, the sovereign wealth fund of Abu Dhabi ADQ/Lunate, Northstar, Back in Black Capital, and prominent Filipino investors,” Salmon said in a statement on Tuesday.

The equity round was led by venture capital firm Spice Expeditions, LP, which is mainly focused on global financial technology (fintech) firms.

“The bond transaction marks the first-ever Nordic bond issuance by a technology firm out of Southeast Asia. At $88 million of combined funding, the transaction is one of the largest recent investments in the Philippine financial technology industry, propelling Salmon to the top ranks of challenger fintech players in the country,” it said.

Salmon operates the Rural Bank of Sta. Rosa (Laguna), Inc. and financing company Sunprime Finance, Inc. in the Philippines.

“Millions of Filipinos still struggle with limited access to fair and transparent credit, while traditional banks often fail to meet their needs. We’ve built Salmon to change that — by leveraging AI (artificial intelligence) and cutting-edge technology, we’re making credit more accessible, deposits more rewarding, and financial services simpler for every Filipino,” said Salmon Co-founder and Business Head Raffy Montemayor.

Mr. Montemayor said Salmon currently has more than 3,000 partner stores nationwide. Its bank offers a time deposit rate of 8.88% per annum, which he noted is one of the highest in the market.

“With this new funding, we will expand our reach, introduce more innovative products, and accelerate our vision of building the most customer-centric and innovative financial institutions in the Philippines,” he said.

Salmon Co-founder Pavel Fedorov said in a separate statement that they want to revolutionize banking in Southeast Asia while building on their local gains.

“For too long, the legacy banks in the region have provided sub-standard products, service, and customer experience, and the Philippines is a case in point. At Salmon, we believe in the quality of our technology and proprietary AI solutions to bring customers better products — the most empowering of which is access to credit… With the successful closing of this transaction, and with the strength of Salmon’s one-of-a-kind team, we will be taking Salmon to leadership positions in the financial services industry across Southeast Asia,” Mr. Fedorov added. — BVR