Singapore-based Institutional Lending Exchange (iLex), a Fintech firm focused on developing a multilateral digital or e-market platform that will support the deal flow and liquidity opportunities for loan market participants, has reportedly finalized its seed funding round. The amount raised has not been disclosed.
Investors based in France, Hong Kong, Singapore, and the US took part in iLex’s investment round, the company confirmed. iLex has also committed to a Memorandum of Understanding (MoU) with IHS Markit (a UK-based global information provider) to connect its platform with IHS’ suite of products and services.
Bertrand Billon, CEO and founder at iLex, stated:
“Despite being the world’s second largest source of capital after equities, the corporate loan market remains primarily relationship-driven and relies on inefficient manual processes.”
“As evidenced by the [digitization] of other asset classes, such as equities, foreign exchange or bonds, significant benefits can be derived from a [digital] market, including the lowering of costs and operational risks and improving liquidity and price discovery for the loan market.”
iLex is also working on various integrated online solutions that will automate the (mostly) manual primary syndication and secondary market processes. The Fintech company’s solutions include automated deal workflows, secure communication and collaboration systems, and trade monitoring.
iLex’s software solutions aim to aggregate proprietary and third-party market datasets, in order to offer more insightful analytics on the activities of borrowers and lenders. iLex’s solutions also offer pricing and credit benchmarking tools.
iLex aims to specialize in corporate loans by offering all-digital solutions and forming strategic partnerships. iLex plans to provide better liquidity, efficiency, intelligence and security to the corporate loan market. Established in 2019, the firm’s head offices are based in Singapore.
As mentioned on iLex’s website, the APAC loan market is fragmented. Large corporate outstanding loans in the Asia Pacific (APAC) region are expected to increase from $13 trillion (at present) to $17 trillion by 2025.
There’s also $700 billion in syndicated lending in the APAC area, and more than 12,000 borrowers who have been accessing capital via syndicated transactions in the past 5 years.
There are reportedly around 1,200 active lenders orginating from c.60 countries with regular new market entrants. There were over 30,000 loan participations in new syndicated transactions across the APAC region last year.