KPAY News
KinerjaPay Corp. (KPAY) Successfully Negotiated an Initial $25 Million Non-recourse Credit Facility With Its Local BankPress Release | 10/23/2019
KinerjaPay Corp. (KPAY) Successfully Negotiated an Initial $25 Million Non-recourse Credit Facility With Its Local Bank- Gabriel Capital Ltd. will provide a Major Bracket Bank guarantee underlying the KPAY Credit Facility- Gabriel also subscribed to $200 million of KPAY Preferred Stock, convertible at $1.80 per share
PR Newswire
JAKARTA, Indonesia, Oct. 23, 2019
JAKARTA, Indonesia, Oct. 23, 2019/PRNewswire/ -- KinerjaPay Corp., (OTCQB: KPAY), has successfully concluded negotiations with its local bank, China Construction Bank Indonesia (CCBI), which will provide the Company with a $25 million, non-recourse credit facility. This credit facility will be accessed by the Company utilizing the Gabriel Capital Ltd. ("Gabriel") HSBC bank guarantee, the draft of which has already been approved by the Bank's Credit Committee. Gabriel is a privately-owned, Indonesian family controlled entity, based in Singapore. The final HSBC bank guarantee for $25 million is expected to be received in KinerjaPay's account with CCBI within the week. Upon delivery of the collateral, KinerjaPay will draw down the guaranteed net proceeds of $22.5 million in three monthly tranches of $7.5 millioncommencing within 48 hours of receipt of the final bank guarantee. Upon each draw, KPAY will issue Gabriel a proportionate number of shares of Series F and G Preferred Stock under Gabriel's executed Reg S Subscription Agreements, based upon the net subscription proceeds. Gabriel intends to continue delivering such guarantees until the full $200 million is received under these Subscription Agreements.
CCBI will fund on a non-recourse basis supported by the collateral underlying the Gabriel guarantee. In effect, Gabriel is making an equity investment in KinerjaPay Corp.'s Preferred Stock, which is being issued in consideration for Gabriel's guarantee. The Series F Convertible Preferred Stock is convertible into shares of Common Stock at an average of $1.80 per share. The Series G Preferred Stock provides for KPAY's sole right to affect the conversion into Common Stock at $1.80 per share provided that the KPAY shares are trading at $3.50 or higher for a period of 20 days commencing six months after the dates of issuance of the Series G Preferred Stock. Gabriel, however, does not have the right to elect to convert the Series G Preferred Stock at its option.
The Company's Chairman and CEO, Mr. Edwin Ng commented, "We are extremely pleased to have completed the negotiation process with the local Bank for the non-recourse credit facility. We are also very fortunate to be supported by Gabriel Capital Ltd.'s equity investment in KPAY's Preferred Stock, shares of which shall issued upon receipt of the final HSBC bank guarantee. We have put in place an equity financing structure to enable KPAY to be at the forefront of Indonesian growth in key business and financial sectors." Mr. Agoeng Noegroho, the Chief Investment Officer of the Singapore-based Gabriel Capital Ltd. stated "We view our $200 million investment commitment, of which this first tranche of $25 million will close upon the delivery of our collateral, as evidence of our belief in Indonesia's growth and KPAY's ability to invest in exciting US technologies suitable for integration into the rapidly growing South East Asia economy."
