PETALING JAYA: Boost, the fintech arm of Axiata Group Bhd, becomes the first fully digital financier in South-East Asia to secure an investment-grade A1 rating from RAM for its maiden tranche of Senior Class A Medium Term Notes (MTN) of securitised financing receivables.

       The rating that comes with a tenure of 30 months will be issued by a Special Purpose Vehicle (SPV) Salvare Assets Bhd and reviewed on an annual basis.

       The group believes the rating obtained underscores Boost’s capabilities and competencies in accelerating financial inclusion through Boost Credit, formerly known as Aspirasi, using robust alternative data scoring frameworks.

       “Its portfolio underwent thorough scrutiny and demonstrated soundness to meet its financial obligations,” said Boost in a statement.

       By stringent credit scoring underpinned by a host of alternative data and AI models, Boost Credit has a non-performing financing rate of less than 3% from funds disbursed to finance small and medium-sized enterprise (SME) customers’ working capital, supply chain and invoice financing needs to grow their business.

       “In three years of operation, Boost Credit has disbursed in total more than RM1.2bil to SMEs in both Malaysia and Indonesia,” it said.

       Meanwhile, the company intends to issue more MTN tranches as it grows its financing portfolio to meet the needs of SMEs.

       “We anticipate this rating will help diversify our capital base, enabling us to further support more SMEs,” said Boost chief executive officer Sheyantha Abeykoon.

       SMEs will only need three minutes for the digital application supported by AI and machine learning tools as the group’s digital-first solutions incorporates a comprehensive e-Know Your Customer.

       The group believes to provide a quick approval process for applicants to meet their financial needs to grow their business.