MoneyMe (ASX:MME) shares closed over 11% higher today. Here’s why

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MoneyMe (ASX:MME) shares closed over 11% higher today. Here’s why

ASX MME, MoneyMe, ASX MoneyMe, MoneyMe funding
Image source: © Flynt | Megapixl.com

Highlights 

  • Australian online consumer lending service provider – MoneyMe established an additional funding facility.
  • MME will receive an immediate additional capacity of AU$200 million to finance Autopay receivables.
  • The company has also announced to increase its Major Bank funding capacity - Horizon 2020 Trust (HW20) by 10% to AU$467 million.

On Tuesday, shares of the Australian online consumer lending service provider – MoneyMe Limited (ASX:MME) jumped over 11%, closed at AU$1.96 each after the company announced that it has established an additional funding facility.

Morgan Stanley Australia leads the new warehouse funding facility to meet the requirements of MME’s high growth Autopay product.

Key highlights –

  • MME will receive an additional AU$200 million to finance Autopay receivables with the new funding facility.
  • The company will get an immediate Group funding cost reduction with a funding cost of < 3% over 1mth BBSW.
  • The new warehouse funding facility will also provide a variable rate funding that fully aligns with Autopay’s variable rate consumer pricing.

The company has also announced to increase its Major Bank funding capacity - Horizon 2020 Trust (HW20) by 10% to AU$467 million.

Clayton Howes, MoneyMe’s MD and CEO, said:

RELATED READ - MoneyMe (ASX:MME) to acquire SocietyOne to scale up business 

Bottomline

With the establishment of a brand-new funding facility, the company expects to deliver significant growth in FY22, as the company anticipates huge market demand for its product – Autopay.

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