TIDMTUNG
RNS Number : 4098A
Tungsten Corporation PLC
22 December 2014
TUNGSTEN CORPORATION PLC
("Tungsten" or the "Company")
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN
PART, IN, INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, JAPAN
NOR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF
THE RELEVANT LAWS OF SUCH JURISDICTION
For Immediate Release 22 December 2014
Financing Update
Tungsten Agrees Financing Arrangement With Insight
London, 22 December 2014 - Tungsten Corporation plc (LSE: TUNG)
("Tungsten" or the "Company") today announced that it has signed an
agreement with Insight Investment Management (Global) Ltd
("Insight") under which Insight has agreed to invest in Tungsten
Early Payment receivables, eligible invoices originated by Tungsten
in Europe and North America.
Insight, a leading global asset manager responsible for over
GBP318 billion in assets under management, has agreed to purchase
approved-to-pay, investment grade receivables originated through
the Tungsten Network e-Invoicing platform. Terms of the agreement
with Insight, which is subject to certain regulatory approvals, are
not disclosed. Insight is owned by BNY Mellon.
The funding to be provided under this multi-year agreement is
expected to total several billion pounds. This financing, together
with the existing capital within Tungsten Bank, will provide the
Company with all the required funding at this stage for its invoice
finance proposition, so the Company no longer needs to pursue
alternative financing options, such as a bond issue. Tungsten had
previously announced that the majority of capital required for its
supply chain finance activities would be funded by third parties.
Tungsten Bank also provides the opportunity to raise deposits from
clients as well as from the Buyer customers on the Tungsten
Network, which would enable the Buyers to deploy cash balances to
finance their supply chains.
Edmund Truell, Group CEO of Tungsten and Chairman of Tungsten
Bank, said: "The agreement with Insight is a significant milestone
in the development of Tungsten. We can now execute on our ambitious
strategy for our Tungsten Early Payment invoice financing business,
which is an important element of our future growth. We now have the
wherewithal to finance invoices on a significant global scale,
having already successfully financed invoices for UK-based
Suppliers on our platform. Tungsten will now offer Tungsten Early
Payment to a wider audience. These arrangements also help reinforce
a key part of Tungsten's financing proposition, which is to make
available supply chain finance to Tungsten Early Payment Suppliers
once they have taken cash advances."
Insight is a leading investment manager offering deep and broad
fixed income capabilities. It has a long track record of breaking
new ground in fixed income, with this being the latest example of
innovation. From Insight's perspective, trade receivables offer a
potentially attractive risk/reward profile in the context of its
clients' broader investment strategies.
Meanwhile, Tungsten continues to expand the Tungsten Network,
and is working to extend its service to all G20 countries while
aiming to bring onto the Network all of the invoice flow of our
major Buyers. Following the DocuSphere acquisition earlier this
year, the Company now has the technological capability to offer to
finance the vast majority of approved-to-pay invoices to Suppliers,
not just those received electronically on the Network. This would
address the many billions in invoice value that are not currently
being processed electronically. Tungsten estimates that some $2.7
trillion of addressable spend could be transacted over Tungsten
Network if Buyers used the Network for all the business they do
with their Suppliers.
Enquiries:
Tungsten Corporation plc
Edmund Truell, Chief Executive Officer +44 20 3435 5680
Juliana Wheeler, Head of Global Communications +44 20 7280 7973
Charles Stanley Securities
(Nominated Adviser and Joint Broker)
Marc Milmo/Dugald Carlean +44 20 7149 6000
Canaccord Genuity Limited
(Joint Broker)
Simon Bridges/Peter Stewart/Cameron Duncan +44 20 7523 8000
Equus Group (Communications)
Piers Hooper/Sam Barton +44 20 7223 1100
About Tungsten Corporation plc
Tungsten Corporation (LSE: TUNG) accelerates global trade by
enabling customers to streamline invoice processing, improve
cash-flow management and make better buying decisions from their
detailed spend data.
Buyer organisations that join Tungsten Network, the world's
largest compliant electronic invoice network, can reduce their
invoice-processing costs. Tungsten helps buying organisations
profit by applying real-time spend analytics to its vast repository
of line-level invoice data; improve their compliance; and manage
their suppliers with its disruptive procurement tools. Suppliers
benefit from efficiencies, greater visibility of their invoice
status and peace of mind. Tungsten offers Tungsten Early Payment
supply chain financing on a global basis.
Tungsten serves 56% of the Fortune 500 and 67% of the FTSE 100
by connecting the world's largest companies and government agencies
to their thousands of suppliers around the globe. It estimates that
its buyers transact over $2.7 trillion of addressable spend
annually. The Tungsten Network enables suppliers to submit tax
compliant e-Invoices in 47 countries, and last year processed
transactions worth over $187bn for organisations such as Alliance
Data, Aviva, Cargill, Deutsche Lufthansa, General Motors,
GlaxoSmithKline, Henkel, IBM, Kellogg's, and the US Federal
Government.
Tungsten Corporation joined forces with OB10 in October 2013 to
create the world's largest electronic trading network; and acquired
DocuSphere in September 2014, a provider of workflow automation
solutions.
Tungsten Early Payment enables suppliers to be paid for invoices
when they need it. Suppliers select the invoice and payment date
and Tungsten pays the invoice amount minus a discount charge. This
integrated invoice finance offering has been designed with Tungsten
Network suppliers in mind and provides a low cost and
easy-to-access alternative to traditional forms of bank
finance.
Contact: Juliana Wheeler, Head of Global Communications, +44 20
7280 7973.
juliana.wheeler@tungsten-network.com
Tungsten Early Payment is subject to eligibility and standard
terms and conditions. Tungsten Network Finance Limited reserves the
right to make a final determination as to whether or not you are
eligible for Tungsten Early Payment. Tungsten Bank and or Tungsten
Network Finance Limited will carry out money laundering checks on
your company in accordance with local legal requirements. Tungsten
Early Payment may not be available in certain jurisdictions.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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