Boston, MA 09/24/2014 (wallstreetpr) – Net Element International Inc (NASDAQ:NETE) recently announced that it got $11 million financing from Alfa Bank. NETE is a tech company that specializes in value added transactions and mobile payments. It runs its operations mainly in United States and a few emerging countries. At the same time, Alfa Bank is Russia’s biggest bank, which has a good track record in credit financing in the past.
Insights of financing:
Alfa Bank renewed Net Element International Inc (NASDAQ:NETE)’s financing and approved its request to increase its Russian subsidiary OOO TOT Money from 300 million Russian rubles to 415 million Russian rubles($11 million). While giving interview to one of the magazines, he said that the funding would further support the company in order to run its operations in various Commonwealth of Independent States including Russia. Previously the company entered into a financing deal with Alfa two years back in September 2012 for total USD $9.8 million financing, which expired on May 20, 2014. The company made all the payments with the help of its working capital on or before the prescribed date, which opened doors for the renewal of the deal.
One of the representatives of Alfa Bank said that the entire senior management was very pleased to sign a deal with NETE. He further said that TOT money was one of the major initiatives to revolutionize the transactional services in Russian market. Because of this reason, bank was happy to fund the company and helped it expanding its services and offerings in Russian market. According to Oleg Firer, Chief Executive Officer of Net Element International Inc (NASDAQ:NETE), the financial help from Alfa would prove to be a game-changing help in coming days. He also emphasized on company’s relationship with the largest bank of Russia saying that Alfa Bank understood the working procedure of NETE and gave it freedom to execute credit facility for continued growth.