Prodigy Finance inks $350m funding line
Student loan lender Prodigy Finance has secured a $350m (£273m) facility with asset managers Citi, Schroders Capital and SCIO Capital.
This is the first deal that Prodigy has closed under its new multi-issuance special purpose vehicle structure.
“We are thrilled to secure this facility from Citi, Schroders Capital and SCIO Capital, which we will deploy to enable international masters students to unlock their full potential,” said Neha Sethi, chief financial officer at Prodigy Finance. “Education is a catalyst for societal progress, and we believe that financial barriers should not hinder anyone’s pursuit of knowledge. Through this initiative, we are committed to empowering students to realise their dreams and contribute meaningfully to the world.”
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Prodigy Finance has funded more than $1.8bn in postgraduate education loans to date, to more than 35,000 students from over 100 different countries.
Its lending model enables students to apply for a loan based on their future earning potential and not just their current circumstances and credit history.
As of 2022, 86 per cent of Prodigy Finance’s borrowers come from emerging markets, while 67 per cent are first-generation students.
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“We are pleased to continue our financing relationship with Prodigy,” said Michelle Russell-Dowe, global head of securitized product and asset-based finance at Schroders Capital. “As access to credit globally becomes more scarce we appreciate the opportunity to find attractive investments facilitating education, and we are happy to complete our second financing with Prodigy in this area.”
Prodigy Finance cited research from market intelligence firm HolonIQ, which forecast that around eight million internationally mobile students will register with foreign institutions by 2030.
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