OP Finnfund Global Impact Fund I in African payments deal

The fund has invested in TerraPay to boost access to affordable remittances in countries across Africa.

** For the best experience, download the free Africa Private Equity News app Android | iOS **

---

The OP Finnfund Global Impact Fund I, the first Finnish global emerging markets impact fund, has invested in TerraPay to boost access to affordable remittances in countries across Africa.

The investment is part of a $75 million financing package that includes a $30 million loan from IFC, a B Loan of $15 million provided by impact investor ILX, and a combined parallel loan of $30 million from OP Finnfund Global Impact Fund I and Belgian development finance institution BIO.

“We are very glad to take part in this transaction, which is OP Finnfund Global Impact Fund I’s first investment in Africa’s fast-growing fintech sector and enables small-size payments to be executed in real-time to African and Asian low and middle income countries,” says Tuomas Virtala, head of OP Asset Management.

TerraPay streamlines the remittance process by integrating and connecting major markets and money transfer operators such as Western Union, MoneyGram, and Ria.

The financing will help TerraPay expand its operations by partnering with more global money transfer operators and by increasing the volume of transfers it processes across Africa. The expansion will help reduce the marginal cost, and speed and simplify international remittance transfers.

Stay ahead in Africa's private equity and venture capital sector with Africa Private Equity News’ monthly Dealmaker’s Log – a database of reported investment deals, exits, and fundraising closes. Subscribe here