Creditstar Group is pleased to announce that it successfully issued and sold bonds in the total amount of EUR 18,33 million with maturities of 12 and 18 months. The proceeds were used to redeem maturing bonds and to finance loan portfolio growth across multiple markets. The bond issues were advised by independent investment banking company Redgate Capital.
Aaro Sosaar, CEO of Creditstar Group, said: “Creditstar had a successful 2019 and a strong first quarter. While recent global events have affected many industries and we are no exception, with the bond issues now successfully completed and with the good cooperation with Mintos, we are well on track to continue our growth path. We keep on focusing on maintaining a diversified funding structure and greatly appreciate investors on Mintos who choose to invest in loans issued by Creditstar and continue to do so. The proceeds from the bond issue will enable us to grow our loan portfolio in multiple markets, and will not be used to repurchase outstanding investments from investors on Mintos.”
Redgate Capital’s partner Aare Tammemäe added: “In an environment of Covid-19 crisis and considering that investors are currently more cautious, Creditstar Group’s bond issue received a very positive response. In praise of the issuer, strong financial track record and transparent communication with its investor base should be highlighted, and as a result, the issue volumes have increased significantly in the past five years”.
For Mintos investors, the successful bond issue signals that Creditstar is a healthy company that is able to attract bond funding amidst the ongoing crisis. Investors can rest assured that the proceeds from these bonds will not be used to repurchase outstanding investments from Mintos.
Creditstar, a provider of consumer financial services, was established in 2006 in Tallinn, Estonia. Today it operates in Estonia and in seven other countries across Europe, including Finland, Sweden, Poland, UK, Czech Republic, Spain and Denmark. The Group has offices in Tallinn, Warsaw, London, and Vilnius. The Company offers unsecured online and mobile consumer loans in the amount of EUR 50 to 5,000 for a period of 5 days to 36 months (or longer in case of credit line).
Creditstar Group’s annual income in 2019 was € 31,9 million, and profit was € 5,9 million. Total assets as of 31 March 2020 were € 132 million. Creditstar is regulated and licensed by relevant supervising authorities in all its markets.