Alfa-Bank Increases Net Element Financing
Net Element announced Alfa-Bank, Russia’s largest private bank, renewed and increased Net Element’s Russian subsidiary OOO TOT Money facility from 300 million Russian rubles to 415 million Russian rubles (approximately $11 million at current exchange rate). This financing facility will support the company’s next stage of growth and operations in Russia and the Commonwealth of Independent States.
TOT Money’s previous financing agreement with Alfa-Bank, secured in September, 2012, for the amount of 300 million Russian rubles (approximately $9.8 million, at the time of the agreement), expired May 20, 2014 and was fully repaid, using TOT Money’s working capital, in accordance with the terms of the agreement.
In April 2014, TOT Money launched its new state-of-the-art platform for mobile commerce, direct carrier billing and payment processing. The $11 million facility will provide TOT Money with financial resources to attract top customers and continue to build upon its platform for Russia and the Commonwealth Independent States (CIS) markets.
Oleg Firer, CEO of Net Element, said, “This financing significantly heightens our liquidity position and enhances our ability to invest in growth opportunities in the region. We value having a lender with deep knowledge of the transactional services market and CIS region.”
Net Element is a technology-driven group specializing in mobile payments and value-added transactional services in emerging countries and in the U.S.