Prospa raises $45 million for NZ funding

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The money will be used to fund small business loans, Prospa said in a statement.

The three year facility has an initial capacity of $45 million but can be expanded. Prospa said funding costs were "broadly consistent with the levels observed for Prospa’s facilities in the Australian market".

Until now, Prospa had funded New Zealand loans from Australia.

Prospa has partnered with a "top tier local funding partner" for the facility. The funding partner, whose name has not been disclosed, has subscribed to Class B notes, Prospa said.

The funding is the latest big development for Prospa, which entered the New Zealand market earlier this year, and is led by Adrienne Church, the former Resimac general manager Adrienne Church.

Church, now general manager of Prospa NZ, said: “This facility will allow us to support an increasing number of local small businesses. Our New Zealand customer base is diversified across a range of industry sectors including hospitality, retail, professional services and building and trade."

Prospa also raised more than $100 million in an initial public offering in June.