Afterpay Touch Group Limited (ASX: APT) has announced that following the annual review of its financing arrangements with National Australia Bank (NAB), approval has been received to increase the existing NAB warehouse funding facility from $200m to $350m.
The term of the new facility will be 24 months. While the specific terms of the new facility are confidential, they represent an improvement with respect to both pricing and advance rates and covers all lines of business that Afterpay currently undertakes in Australia. Implementation of the new facility is subject to documentation.
The current capital structure and capacity provided by the new facility will give Afterpay even greater scope to grow retail sales in Australia. The weighted average duration of Afterpay’s receivables book remains consistently short (under 30 days), providing scope to grow underlying sales by multiples of the current run-rate.
Afterpay appreciates its association with NAB and the relationship that has developed over the past 12 months. The NAB team has undertaken extensive work to understand the Afterpay business model, our capabilities and our approach to serving customers and the retail industry at large. We look forward to the opportunity to work even more closely with NAB in the future.
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