eServGlobal Limited Guarantees Credit Facility to HomeSend (8007E)

TIDMESG

RNS Number : 8007E

eServGlobal Limited

11 May 2017

eServGlobal Limited ("eServGlobal" or the "Company")

Guarantees Credit Facility to HomeSend

Paris: 11 May 2017

eServGlobal (LSE: ESG.L & ASX: ESV.AX), the provider of innovative mobile financial technology, advises that it has today agreed to guarantee, pro-rata in proportion to its shareholding in HomeSend SCRL, a EUR5m credit facility provided by KBC Bank SA to HomeSend SCRL (the Guarantee). The loan facility has been obtained by HomeSend to support the growth of the business by supplementing the working capital reserves, as and when required, to facilitate transfer settlements. The Mastercard and BICS shareholding entities in HomeSend SCRL have given similar guarantees (collectively, the Guarantors).

HomeSend SCRL will reimburse a Guarantor for any payment made under the Guarantee. If HomeSend issues capital either to reimburse a Guarantor or to satisfy monies owing under the credit facility following a Guarantor failing to meet a demand made against them under the Guarantee, it has been agreed that the capital in HomeSend SCRL will be issued at fair market value and a defaulting Guarantor will not participate in the capital raising.

The Guarantee is given by eServGlobal (NZ) Pty Ltd and may be withdrawn, in respect to future credit, on three months' notice. eServGlobal Limited has agreed to indemnify eServGlobal (NZ) Pty Ltd against any demands made against eServGlobal (NZ) Pty Ltd under the Guarantee. The Guarantee is unsecured.

Andrew Hayward, CFO of eServGlobal commented, "The risk attached to this guarantee, while not theoretical, is low in the normal course of business. The facility is to avoid putting unnecessary strain on the working capital of the business and is a sign of growing success."

About eServGlobal

eServGlobal (AIM:ESG, ASX:ESV) offers mobile money solutions which put feature-rich services at the fingertips of users worldwide, covering the full spectrum of mobile financial services, mobile wallet, mobile commerce, recharge, promotions and agent management.

For more than 30 years, eServGlobal has been a source of innovation for telcos and financial institutions. Using carrier-grade, next-generation technology, eServGlobal aligns with the requirements of customers around the globe.

Together with MasterCard and BICS, eServGlobal is a joint venture partner of the HomeSend global payment hub, enabling cross-border money transfer between mobile wallets, cards, bank accounts or cash outlets from anywhere in the world.

For further information, please contact:

 
 eServGlobal                                 www.eservglobal.com 
 Tom Rowe, Company Secretary                 [e-mail] 
  Alison Cheek, VP Corporate Communicatons 
 finnCap Ltd (Nomad and Broker)              www.finnCap.com 
  Jonny Franklin-Adams / Anthony              T: [phone] 
  Adams                                       0500 
 Alma PR (Financial Public Relations)        www.almapr.co.uk 
  Hilary Buchanan / John Coles                T: [phone] 
                                              4218 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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May 11, 2017 02:01 ET (06:01 GMT)