StoneCo. Announces $467.5 million credit facility from DFC to strengthen working capital of micro, small, and medium businesses
December 18 2023 - 3:29PM
StoneCo Ltd. (Nasdaq: STNE; B3: STOC31) (“Stone” or “the Company”)
announced that it has obtained a commitment of US$467.5 million in
the form of a revolving securitization facility from the United
States International Development Finance Corporation (DFC), an
agency of the United States government. The facility, which has a
final maturity of seven years, and a six-month availability period,
acquires accounts receivables due by over twenty different
non-systemic important Brazilian financial institutions that are
credit card issuers, on a non-recourse basis. It will further
strengthen Stone's ability to offer prepayment of receivables to
micro, small, and medium-sized businesses (MSMBs), which use the
solution to optimize cash flow, financial flexibility and improve
management. The closing of the transaction is subject to customary
conditions precedents.
Stone's prepayment of receivables, including
with the proceeds from the new DFC facility, supports retailers by
enabling installment sales in a simple, agile way and with
immediate liquidity. The focus of the facility is to support
businesses that are women-led or have the majority of the workforce
composed of women. The intention is that the resource will mainly
impact entrepreneurs in the North and Northeast regions of
Brazil.
“Micro, small and medium-sized entrepreneurs
account for a significant part of GDP. Aligned with our purpose,
DFC’s credit facility allows us to offer better products and
services to our customers and contribute to the socioeconomic
development of our country”, says Pedro Zinner, CEO of StoneCo.
“With the resources obtained, we will be able to further leverage
our solutions to support entrepreneurs seeking to scale their
businesses. At the same time, we generate a strong positive impact
on society, boosting local commerce, creating job opportunities,
and leveraging economic activity."
“With this deal, Stone is also pledging to
become part of the 2X Global Challenge, not only because of the
focus on supporting businesses with women ownership or with the
majority of their workforce being women but committing to certain
KPI reports in our workforce and leadership”, says Carol da Costa,
Chief Impact & Sustainability Officer. This new transaction
reinforces the company's commitment to strengthening the
entrepreneurship ecosystem in the country, focusing on supporting
developing communities.
About StoneCo
StoneCo is a leading provider of financial technology and
software solutions that empower merchants to conduct commerce
seamlessly across multiple channels and help them grow their
businesses.
Forward-Looking Statements
This press release contains "forward-looking
statements" within the meaning of the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are made as of the date they were first
issued and were based on current expectations, estimates, forecasts
and projections as well as the beliefs and assumptions of
management. These statements identify prospective information and
may include words such as “believe,” “may,” “will,” “aim,”
“estimate,” “continue,” “anticipate,” “intend,” “expect,”
“forecast,” “plan,” “predict,” “project,” “potential,”
“aspiration,” “objectives,” “should,” “purpose,” “belief,” and
similar, or variations of, or the negative of such words and
expressions, although not all forward-looking statements contain
these identifying words.
Forward-looking statements are subject to a
number of risks and uncertainties, many of which involve factors or
circumstances that are beyond Stone’s control.
Stone’s actual results could differ materially
from those stated or implied in forward-looking statements due to a
number of factors, including but not limited to: more intense
competition than expected, lower addition of new clients,
regulatory measures, more investments in our business than
expected, and our inability to execute successfully upon our
strategic initiatives, among other factors.
Contact:
Investor Relations
investors@stone.co
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