GXBank and IFC to Support Up to USD110m in Malaysian MSME Financing

GXBank IFC MSME financing could support up to USD110m in lending to Malaysian businesses under a risk-sharing partnership designed to expand credit to underserved companies.

The International Finance Corporation, the World Bank Group’s private-sector investment arm, will provide up to USD4.95m in unfunded first-loss coverage, according to GXBank.

The facility will allow the Malaysian digital bank to increase lending to micro, small and medium-sized enterprises, including companies with limited credit histories or without traditional collateral.

By absorbing initial losses and reducing capital requirements for covered loans, the arrangement will free additional balance-sheet capacity for automated credit deployment, GXBank said.

The partnership is the first arrangement of its kind involving a Malaysian digital bank, according to GXBank.

The lender said the initiative is intended to help address financing gaps affecting 97.4% of Malaysian MSMEs and broaden access to formal business credit.