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Net Element, Inc. (NETE) Secures Additional Financing for Russian Subsidiary
Net Element, an international technology-driven company focused on mobile payments and transactional services in emerging countries and the United States, recently revealed that Alfa-Bank, Russia’s largest private bank, has renewed and increased the credit facility of its Russian subsidiary, TOT Money.
The increased financing from 300 million Russian rubles to 415 million Russian rubles (an estimated USD $11 million addition at the time of exchange) improves the company’s liquidity position as well as its ability to invest in growth opportunities. The additional credit will allow TOT Money to speed up its growth efforts in Russia and further revolutionize the country’s transactional service market. It will support the company as it evolves and expands its service offerings and operations in Russia and the Commonwealth of Independent States (CIS). The $11 million credit facility will also provide the subsidiary with the financial resources it needs to attract top customers and to continue to build upon its state-of-the-art platform for mobile commerce, direct carrier billing and payment processing.
TOT Money entered into a previous financing agreement with Alfa-Bank in September of 2012. That agreement was for 300 million Russian rubles or approximately USD $9.8 million at the time of the agreement, and expired in May 2014 by which time TOT Money had fully repaid the loan using its working capital. In keeping the terms of this agreement, TOT Money further strengthened its working relationship with Alfa-Bank, an important lender with significant knowledge of the transactional services market in Russia and the CIS region.
Net Element owns and operates the TOT Group of Companies, which includes: TOT Money; Unified Payments, a fast-growing company in America; and Aptito, a next generation cloud-based point of sale payments platform. Together with these subsidiaries, Net Element endeavors to add value to mobile commerce and e-commerce environments.
For more information, visit www.netelement.com
