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FINDI LIMITED — Capital/Financing Update 2012
Aug 13, 2012
64934_rns_2012-08-13_edac1bc3-d3c7-449e-aa2d-5dde75260de4.pdf
Capital/Financing Update
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Transaction Solutions International
Limited
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TSI SECURES A$18.5 million COMMERCIAL FUNDING
1 Billion Rupee operating lease facility (A$18.5 million) secured
Funds provided on a needs basis (draw down facility)
Underpins growth strategy
The Directors of Transaction Solutions International Ltd (“TSI”) are pleased to announce that TSI India has secured a commercial operating lease facility for 1 billion rupees, representing approximately A$18.5 million (Based on A$1 = 54 INR).
TSI, through its subsidiary TSI India, has negotiated an operating lease of up to A$18.5 million to be provided on a “needs based” facility. This will allow TSI India the flexibility to draw down capital against contracts as required. Further, should TSI India find alternative lease funding on superior terms and conditions, it will only be required to offer the current Lessor a first right of refusal on the outstanding balance of the facility.
Previously TSI indicated that it was researching funding options. The Company received offers for bank debt and operating leases. It was determined that the option of leasing was less onerous, whilst providing a greater level of flexibility for the business.
Gary Foster, Managing Director of TSI advised, “We see this facility as quite an achievement in a tough economic environment. Access to any form of capital is extremely tough. I feel this facility not only supports our business, but reflects the interest lenders have for the ATM sector as a growth opportunity in India. It allows us the potential to double the size of the Company providing we secure suitable agreements.”
Gary Foster Managing Director
+61 8 65000 226 +61 417 170 240 [email protected]
ABN 98 057 335 672 24 COLIN STREET, WEST PERTH, WA 6005 TEL: +61 8 6500 0226 FAX: +61 8 9226 2235
About TSI
Founded in 2005, TSI’s business is a rapidly growing bank ATM deployment and e-transaction financial services business based in India. Operational in India since 2006 the Company now has in excess of 900 ATMs fully operational and further contracts for up to another 150 ATMs to be installed.
The Company’s business model is to build recurring revenue through the deployment of ATMs on behalf of major banks in India. In addition TSI has contracts to service the financial payments sector through automation of bill payment processes, in a market that is migrating from paper based to electronic transactions.
TSI owns, manages and operates its financial hardware and systems, in return for a fee per transaction. This recurring revenue model assists TSI in producing a business model that is highly scalable.
TSI has agreements with a large number of national companies including major banks, utilities and corporates. It is these corporations (not consumers) who form TSI’s customer base, and from who TSI receives its revenues.
Supported by the strong infrastructure and business platform built over the last 5 years, and a leading market reputation the business is now scalable by the installation of new ATM’s and building on the recently introduced bill payments capability. Barriers to entry in the sector are high with regulatory and banking approvals required. TSI has successfully overcome those barriers, as reflected in its growth profile and the increasing demand for its ATM outsourced business.
ASX: TSN
ABN 98 057 335 672 24 COLIN STREET, WEST PERTH, WA 6005 TEL: +61 8 6500 0226 FAX: +61 8 9226 2235