ZipMoney lands largest debt facility in Australian fintech history with $260 million led by NAB
Sydney company ZipMoney has secured a $260 million debt facility led by the National Australia Bank, in what the startup claims is the largest such deal in Australian fintech history.
ZipMoney announced to the ASX on Wednesday that the facility would consist of $200 million from NAB, $40 million through two-year bonds issued through FIIG Securities, and $20 million in junior notes and equity. An “immediate refinance of $70 million of existing receivables” will take place using the NAB facility, resulting in an instant reduction in interest for the business.
The startup operates a “buy now, pay later, with no interest” service — integrating into online retail stores to reach consumers — meaning a large cash reserve is imperative.
ZipMoney co-founder and chief operating officer Peter Gray said that passing the due diligence process with NAB was a testament to the IP value of the startup’s credit and fraud decision technology.
“Since founding the company in 2013, we believed that securing a significant banking partner would be integral to supporting Zip.”
The publicly listed company stated that the new facility will have a two-year tenure and is expected to become operational by the end of this week.
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