Bank of New Zealand (BNZ) has agreed to a NZ$1.5mn trade finance facility for Wellington Drive Technologies, an Auckland-headquartered electronics firm.
The facility is secured against customer invoices, and the funds will be used for general working capital purposes. Interest payable on the facility is at the BNZ base rate at the time of any drawdown, plus a margin of 300 basis points. The facility has no expiry, but the facility limit can be reduced by the bank at any time and an EBITDA gross interest covenant applies.
“This facility will help support Wellington’s future development via lower cost funding,” says Greg Allen, Wellington Drive Technologies’ CEO.