eServGlobal Limited HomeSend KPIs, Facility & Second Tranche Capital (2312Z)

TIDMESG

RNS Number : 2312Z

eServGlobal Limited

16 May 2019

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

HomeSend KPI Update, Facility Agreement & Second Tranche Capital Contribution

16 May 2019

eServGlobal (LSE: ESG.L & ASX: ESV.AX), a pioneering digital transactions technology company, is pleased to provide the following update on the performance of HomeSend to 31 March 2019.

 
KPI                                 Previous Quarter        Q1 2019 
                                         Q4 2018 
Average Transaction Value             35% increase       13% increase 
                                     during H2 2018    over prior quarter 
                                    ----------------  ------------------- 
Gross Value Flows across HomeSend    Stable over Q3      20% increase 
 platform                              and Q4 2018     over prior quarter 
                                    ----------------  ------------------- 
Key Destination Markets Covered            60                 64 
                                    ----------------  ------------------- 
 

The number of Mastercard Send and HomeSend customers live on the HomeSend platform was unchanged from Q4 2018, with the number of projects in implementation and development remaining significant. The number of live corridors increased by 9% during the same period.

Facility Agreement

To provide the float requirements of the forecast increase in gross value flows across the HomeSend platform, eServGlobal Limited has today entered into a loan facility agreement with HomeSend SCRL for the sole permitted purpose of funding the pre-payment timing gaps in HomeSend's settlement model (the "Facility"). Mastercard has entered into a similar loan facility agreement with HomeSend SCRL. The Facility is for a total of EUR20M between eServGlobal and Mastercard with eServGlobal providing approximately EUR7.1M in proportion to its shareholding in HomeSend SCRL. The Facility is in addition to the established unsecured EUR5M credit facility provided by KBC Bank SA to HomeSend SCRL that is substantially fully drawn and is utilised, and will remain so, for the same purpose as the Facility.

The Facility is a revolving credit line, with HomeSend able to draw and re-draw the funds as required with an obligation to return amounts drawn if not required, based on HomeSend's forecasts. The Facility is unsecured and interest is payable quarterly at 1.916% per annum on the amount drawn. There is no establishment or commitment fee. All drawings and repayments under the Facility must be made concurrently by, and proportionately between, eServGlobal and Mastercard in accordance with their shareholding in HomeSend SCRL. The Facility expires on 15 December 2020.

In October 2018 eServGlobal raised its proportionate share of the EUR33M HomeSend was anticipated to require in the short to medium-term for funding of the pre-payment timing gaps in its settlement model. This Facility, together with the established credit facility, is forecast to exceed HomeSend's requirements to the end of 2019, based on the current efficiency of its settlement model. HomeSend may seek additional funding from eServGlobal and Mastercard, or third parties, to meet the requirements for 2020 and beyond.

Second Tranche Funding

Following the first tranche of funding announced on 29 November 2018 for a total of EUR6.1M, eServGlobal advises that it has subscribed for additional ordinary and preferred shares in the capital of HomeSend SCRL for a total of EUR2.19M. Mastercard subscribed for its proportionate number of shares in the capital of HomeSend SCRL so as to maintain the percentage shareholdings of Mastercard and eServGlobal in HomeSend SCRL at 64.32% and 35.68% respectively, providing a total of approximately EUR6.1M in additional capital to HomeSend. The funds are provided to ensure HomeSend satisfies its minimum capital requirements and to support operational expenses.

For further information, please contact:

 
 eServGlobal                                          www.eservglobal.com 
 John Conoley, Executive Chairman                     [e-mail] 
  Tom Rowe, Company Secretary 
  Andrew Hayward, Chief Financial Officer 
  Alison Cheek, VP Corporate Communications 
 finnCap Limited (Nomad and Broker)                   www.finnCap.com 
  Corporate Finance: Jonny Franklin-Adams /            T: [phone] 
  Anthony Adams / Hannah Boros                         0500 
  Corporate Broking: Tim Redfern / Richard Chambers 
 Tulchan Communications LLP                           www.tulchangroup.com 
  Jonathan Sibun / Matt Low                            T: [phone] 
 

About eServGlobal

eServGlobal (AIM:ESG, ASX:ESV) is a pioneering digital financial transactions technology company, enabling financial and telecommunications service providers to create smoother transactions for their customers through deep technical expertise and rapid implementation. Built on the latest technology platforms, eServGlobal offers a range of transaction services including digital wallets, commerce, remittance, recharge, rapid service connection and business analytics. eServGlobal combines more than 30 years' experience, with an agile, future-focused mindset, to align with the requirements of customers and partners around the globe.

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

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May 16, 2019 02:01 ET (06:01 GMT)