• Published on 12 March 2024
• 620 Views
• Print

DCS Card Centre increases asset-backed notes to $300M

DCS Card Centre announced the successful securing of an additional SGD 100 million ($75.1 million) upsize in asset-backed notes, bringing the total funding to SGD 400 million ($300 million).

This additional funding follows the previous SGD 300 million ($225 million) raised, as announced in December 2023. The additional securitisation stems from DCS's successful business transformation in 2023, which includes the onboarding of new scheme partners such as MasterCard, UnionPay and soon Visa. These partnerships have facilitated the launch of new credit card products, including the DCS Ultimate Platinum cards and D-Lite cards. With further product launches planned for 2024, DCS anticipates robust growth in its credit card business, prompting investors' confidence to commit to this SGD100 million ($75.1 million) upsize.

The additional issuance will be allocated towards funding DCS's receivables from retail and corporate customers using its credit facilities. This initiative enables the continued growth and expansion of DCS's business, aligning with its ambitions of establishing itself as a leading player in the payments space, spearheading payments innovation that addresses the needs of the underserved segments and plug gaps in the market.

Karen Low, CEO of DCS Card Centre, said: “Following our successful business transformation in the past year, we have entered an exciting next phase of growth with a robust pipeline of product launches and innovative initiatives ahead. Our commitment remains steadfast in delivering value and growth for our stakeholders and the upsize underscores investor confidence in DCS.”

DBS serves as the arranger for this deal, and future arrangements with more fund houses or financiers may be explored.

The decision to pursue this upsize is influenced by DCS's strategy to diversify its card products and maintain a robust product pipeline, ensuring continued growth. The investor's confidence in this upsize is rooted in DCS's historical portfolio performance, demonstrating stable returns and lower risk due to a low delinquency ratio.

Re-disseminated by The Asian Banker