Financed and Ready to rumble
endTek Systems secures financing in Brazil
2014-05-21 09:25 ET - News Release
Ms. Samantha White reports
VENDTEK SYSTEMS ANNOUNCES NEW FINANCING IN BRAZIL WITH BNDES AND BANK ITAU
VendTek Systems Inc.'s wholly owned Brazilian subsidiary, Now Prepay Servicos de Informatica Ltda. (NPSI), has been approved by Banco Nacional de Desenvolvimento Economico e Social (BNDES) to get a subsidized credit facility of 1,566,000 Brazilian reais ($770,000). The loan, which will be set up through Itau Bank, bears an interest rate of 6 per cent per year over a four-year term.
These funds will be directed to purchasing over 2,700 (point-of-sale) terminals, which will enable the company to accelerate the growth of its network in Brazil. The company expects to receive these terminals from the supplier starting in May, 2014, and immediately commence their installations at merchant locations to fulfill pending retail orders.
Additionally, NPSI has secured a new one-million-Brazilian-real ($490,000) letter of credit with Itau at a 4-per-cent fee to be paid in four instalments. It has also renewed its 800,000-Brazilian real ($392,000) line of credit with the Brazilian affiliate of a Canadian bank. These funds will be used by the company to increase its credit lines with its main suppliers, as well as to support day-to-day operations.
"The approval of BNDES to support our expansion efforts, the securing of an additional letter of credit and the renewal of our existing credit facilities gives us the tools we need to deliver on our business objectives. With financing secured to lease terminals and grow our merchant count, purchase more products from our suppliers and finance our ongoing operations, we are now well positioned to grow our Brazil operations," said Doug Buchanan, president and chief executive officer of VendTek Systems.
BNDES is a Brazilian federal public company associated with the Ministry of Development, Industry and Trade. It is the main financing agent for development in Brazil and lending guarantor for the banking industry. Since its creation in 1952, the BNDES has played a fundamental role stimulating the expansion of industry and infrastructure in the country. Its current role is to support exports, technological innovation, sustainable socio-environmental development and the modernization of public administration.