Fintech company RainFin has announced the conclusion of a transaction with 4 Africa Exchange Proprietary Limited (4AX), which will see the company sell to 4AX its corporate debt marketplace, in exchange for a strategic shareholding in 4AX.
RainFin’s credit marketplace technology has been utilised by companies to raise debt funding from both tradition and non-traditional sources since its formation in 2002.
Also known as crowd-lending, RainFin matches people looking for loans, with ‘investors’ looking to provide these funds and benefiting from an agreed rate of return.
“The addition of the RainFin credit marketplace technology and value proposition to the 4AX listed equities and debt platform allows 4AX to further expand its market disrupting debt offerings,” the company said in a statement on Wednesday (4 April).
“4AX will now have the ability to offer all entities – from mid-sized companies to global conglomerates, to Government institutions and state-owned enterprises (SOEs) – the ability to utilise the 4AX online debt book building platform, whereby they can source debt directly from a combination of retail and institutional investors in one seamless and integrated offering.
“RainFin’s technology enhances efficiencies in the primary debt-listing market (arranging and book-building), whilst 4AX’s technology and regulation framework enhances efficiencies to secondary-market liquidity.”
“The collective value proposition is ideally positioned to deepen South Africa’s sophisticated debt capital market and expand on the growing sophistication of Africa’s debt and loan markets,” the company said.