28th Oct 2019 10:37
(Alliance News) - Fintech company Wameja Ltd said Monday it has remitted EUR1.8 million to joint venture HomeSend SCRL under a an EUR20 million loan facility agreement agreed in May.
The payment was made under a second drawdown request made by HomeSend for EUR5.0 million. HomeSend is jointly owned by Wameja and US financial services firm Mastercard Inc.
The loan agreement is for the purpose of "funding the pre-payment timing gaps" in the platform's settlement model.
Wameja said the drawdown is required to support the increase in gross value flows expected to occur as commercial transactions start to take place within the HomeSend global payment hub.
In addition, Wameja and HomeSend have agreed to reduce the term of the loan facility by nine months to March 31, 2020.
Looking ahead, HomeSend is continuing to evaluate its funding requirements and the optimal solution to support the business's growth. In addition, Wameja is investigating third-party facilities as an alternative to shareholder funding for HomeSend.
Shares in Wameja were down 6.5% at 6.87 pence on Monday in London.
By Dayo Laniyan; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
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