MoneyMe (ASX:MME) announces further funding cost reductions
MoneyMe has announced its debt funding costs have reduced significantly following a refinancing of its funding facilities.
The changes have allowed the fintech stock to successfully lower its funding costs down from 11.4 per cent in June to 4.8 per cent at the end of November.
The company also believes the lower debt funding costs will in turn allow MME to further drive balance sheet growth.
Refinancing & customers
The refinancing by MoneyMe includes adding the Australian Office of Financial Management’s (AOFM) $58 million mezzanine funding into its new major bank warehouse.
It also involved refinancing the existing Velocity warehouse to bring MME’s total funding capacity to $227 million, with that figure likely to grow alongside loan assets.
“Fully realising the step change reduction in its cost of funding is a truly fantastic and exciting landmark achievement for the MoneyMe Group,” MoneyMe’s Managing Director and CEO Clayton Howes said.
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