On April 24, 2018, ID Finance joined Mintos for a live webinar to discuss the company’s latest financials and the investment opportunities in Kazakhstan. After the presentation, investors were able to ask questions of the two speakers – the CEO of ID Finance, Boris Batine and the CFO of ID Finance Kazakhstan, Alexander Pak. Due to time constraints, some of the questions were left unanswered during the webinar, however, you can now read the answers from ID Finance below:
Are the loans on Mintos secured (by real assets) or are they unsecured loans?
ID Finance loans on Mintos are secured with buyback guarantee. That means that ID Finance will repay the loan if it reaches a default of 60 days. ID Finance group acts as a guarantor of this obligation.
What is the total good loan portfolio of the group at the moment? By good portfolio, I mean where non-performing loans are less than 90 days.
Currently, we have a gross portfolio of USD 83 million of these loans.
How is the geographical expansion going?
We are currently working in 8 countries: Spain, Georgia, Russia, Kazakhstan, Belarus, Poland, Brazil, Mexico. In 2018, we plan to launch a business in Colombia and in 2019 to enter the Indian market. We also have plans to expand our operations into the USA in 2020.
What are your growth forecasts and targets for the upcoming years?
In 2018, we expect the volume of loans to increase by 113% and revenue by 90%. Issuance in 2018 – USD 421 million and revenue – USD 232 million.
How much of the group’s growth will come from Kazakhstan?
Issuance will grow from USD 197 million to USD 421 million (or + USD 224 million). Out of which USD 41.5 million comes from Kazakhstan or 19% of total issuance growth.
ID Finance offers investors the opportunity to invest in the Kazakhstani tenge – how do you see the currency risk at the moment?
We consider the currency risk as normal. The key fundamental driver of Kazakhstan tenge exchange rate is the price of oil. We can see a strong increasing trend for Brent price during the last year.
Why should investors invest in loans from Kazakhstan, and in particular, ID Finance’s loans from the country?
The key reasons are:
– High interest rates. Up to 17% annually;
– Buyback guarantee;
– Diversification (exposure to a local Kazakhstan currency – tenge).
In case you missed it, you can watch the webinar here.
