Prospa Group Limited (ASX: PGL) announced the initiation of a new Junior Funding Partner into one of its Australian Warehouse Facilities that provides small business loans as well as line of credit facilities.
The initial capacity of the Junior Note facility is $20 million and is designed to seamlessly scale up over time as the company extends its Australian operations.
PGL has entered into partnership with top-tier local Junior Funding Partner having deep knowledge of the Australian securitisation market and a long-term interest in supporting Australian small businesses and this Junior Funding Partner has subscribed to Class B Notes in the warehouse facility.
The transaction represents an important component of companyâs long-term capital management strategy and will enable PGL to deploy ~17.8 million of capital.
At AEDT 1:15 PM, PGL shares are trading at $1.770, up 4.118% from its previous close.