(25 March 2010 – Australia) Financial services group Firstfolio has signed a deal with the Commonwealth Bank to fund a senior debt facility.The A$23 million, three-year funding agreement will help pay off minor debts held by the company.
According to a company release, Firstfolio will use the facility to pay down debts to ING and Adelaide Bank, as well as to pay out financing agreements to vendors of eChoice and Domain Financial Services.
The company will also pay A$8.9 million off the balance of a loan owing to a company associated with non-executive director Tony Wales.
CBA joins NAB as the second of the big four to provide funding to Firstfolio.
Firstfolio CEO Mark Forsyth has painted the deal as a sign that major banks believe in the company’s strategies.
“It is another vote of confidence by a major bank this financial year,” Forsyth said, adding that the funding showed CBA’s endorsement of Firstfolio’s growth initiatives.
“This new funding line will strengthen Firstfolio‟s capital footing and give us the flexibility to explore key growth initiatives with confidence,” he said.