Most Aussie, NZ tech firms confirm minimal exposure to SVB fallout (updated)

SiteMinder

12/03/2023 22:59

(Updates with details on companies, background)
       March 13 (Reuters) - Australian and New Zealand tech
firms said on Monday they did not have material exposure to
Silicon Valley Bank following the failure of the U.S.
startup-focused lender SVB Financial Group  SIVB.O  last week,
amid fears of a contagion in Asia.   
    Friday's failure of SVB Financial Group, which focuses on
technology startups, was the biggest bank collapse in the United
States since the 2008 financial crisis.
        Australia's Nitro Software  NTO.AX  said that about
$12.18 million of the company's global cash reserves were held
on deposit at SVB.
  
        Nitro said the SVB development does not impact private
equity firm Potentia Capital's A$532.3 million ($352.49 million)
takeover offer for the software maker.
  
        U.S.-based Sezzle  SZL.AX  said the buy now, pay later
firm's relationship with SVB is limited to funds on deposit
which are not material to its ongoing business. 
  
        Meanwhile, Siteminder  SDR.AX  said exposure to SVB and
its United Kingdom unit SVB UK consisted of up to A$10 million
cash holdings and an undrawn $20 million revolving credit
facility.
        The 'Big Four' banks in Australian did not immediately
respond to a Reuters request for comment. 
  
        "The SVB case in the U.S. has been brought about by a
particular set of factors, including a high exposure to the tech
industry. Australia’s banks in contrast are strong and subject
to a different set of regulatory frameworks," a spokesperson for
the Australian Banking Association said.
  
        In New Zealand, cloud-based accounting software company
Xero  XRO.AX  reiterated a similar update, confirming that it
does not have a material exposure to SVB.
        The U.S. Treasury and Federal Reserve 
    announced a range of measures
     on Sunday to stabilise the banking system and said
depositors at SVB  SIVB.O  would have access to their deposits
on Monday.
  


($1 = 1.5101 Australian dollars)

 (Reporting by Upasana Singh in Bengaluru, additional reporting
by Praveen Menon in Sydney; Editing by Lisa Shumaker and Kim
Coghill)
 ((Upasana.Singh@thomsonreuters.com;))