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Tamara secures USD 250 million in debt financing

Wednesday 15 November 2023 08:39 CET | News

Saudi Arabia-based Tamara has secured USD 250 million in debt financing from Goldman Sachs and Shorooq Partners, to improve its BNPL product and release new tools. 

The facility consists of an incremental up to UDF 200 million of senior debt arranged by Goldman Sachs, as well as a USD 50 million mezzanine tranche led by Shorooq Partners. This brought the total senior warehouse facility up to USD 400 million. 

Tamara will use the new funding in order to accelerate and improve the process of developing its flagship BNPL product, as well as releasing capital for investments into new solutions and tools.

 

Saudi Arabia-based Tamara has secured USD 250 million in debt financing from Goldman Sachs and Shorooq Partners, to improve its BNPL product and release new tools.

Goldman Sachs's recent strategy of development

The Goldman Sachs Group is a global financial institution that offers a wide range of financial services and products to a diverse clientele, such as corporations, individuals, governments, and financial institutions. The bank announced multiple developments in the last couple of months, covering several different geographic areas around the world.

In September 2023, the institution entered exclusive tasks with a group of investment firms in order to sell the GreenSky business for USD 500 million. The agreement was in line with Goldman’s plans to cut down on its ambitions in customer banking, as the consortium of investment firms that were interested in purchasing GreenSky included Sixth Street, KKR, Pacific Investment Management, and two other investors. 

At the moment of the press release, the bank announced the selling of GreenSky for USD 200 million, which represented a quarter of the price it paid for it in 2022. Goldman Sachs agreed to make the acquisition of Greensky in 2021 for USD 2.2 billion, but it managed to finalise the deal at the price of USD 1.7 billion in March 2022. The financial institution also focused on completing the sale by the time it reported the third-quarter earnings in October. 

At the beginning of the same month, the Federal Reserve released an official warning to the US-based investment banking firm, over risk and compliance oversight at its TxB fintech unit. According to the press release published at the time, the US-based banking regulators raised risk and compliance warnings and concerns over the partnership that Goldman Sachs had with several financial technology firms. 

A division of the financial institutions’ transaction banking businesses (TxB) announced its plan to stop signing on riskier fintech clients and users, following the warnings released by the Fed earlier in 2023. The problems and issues raised by the Federal Reserve included monitoring processes and insufficient due diligence for the procedure of accepting high-risk non-bank customers.



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Keywords: funding, investment, BNPL, payments , online payments, digital payments, mobile payments
Categories: Payments & Commerce
Companies: Goldman Sachs, Shorooq Partners, Tamara
Countries: Saudi Arabia
This article is part of category

Payments & Commerce

Goldman Sachs

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Shorooq Partners

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Tamara

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