Dinero – the first loan originator from Ukraine to launch on the marketplace, has been part of the Mintos family since August of 2018. Due to recent changes in the legislation of Latvia, there have been changes to the company’s investment structure on Mintos.
Previously, investors could obtain exposure to Dinero loans by investing in loans issued by Mintos Finance SIA, Mintos Group company, to Mondoo SIA, a Dinero group company.
However, this structure has changed, as Mondoo SIA (Latvian entity) has been replaced by Flovel LTD (Cyprus entity).
What does this mean for investors on Mintos?
Overall, this change has no impact on investors at Mintos. However, as we are committed to transparency, we wanted to inform you of the change nonetheless. For investors who have current outstanding investments in Dinero’s loans, the assignment agreements remain active and binding.
The company is the second-largest non-bank online lender in Ukraine, according to the company’s own estimates. Since its establishment in October 2017, Dinero has issued EUR 72 million worth of loans.
On Mintos, Ukrainian-issued short-term loans from Dinero range from around EUR 11 to EUR 850. The repayment period ranges from 7 to 30 days. Dinero’s Mintos Rating is a B-.
Dinero has maintained a stable loan portfolio performance while also having high portfolio growth. By the end of September 2019, in 2 years of operating history, Dinero’s gross portfolio had grown to EUR 23.5 million.
New investment structure
Taking into consideration legal requirements and investors’ interests, investors will be able to obtain exposure to Dinero loans by investing in loans issued by Mintos Finance SIA, Mintos Group company, to Flovel, a Dinero group company.
The repayment of each loan issued by Mintos Finance to Flovel will be pegged to the repayment of a respective loan issued by Flovel to Dinero and this loan will be pegged to repayment of the respective loan issued by Dinero to the borrower. Mintos Finance loans will be directly secured by a pledge on claims arising from Dinero loans issued to borrowers.
Mintos Finance will provide funding to Flovel up to 90% of the principal of a respective loan Dinero has issued to its borrower. Accordingly, Dinero will keep 10% skin in the game. Dinero will repay the loan to Flovel in lockstep with the repayment of the respective loan Dinero has issued to its borrower.
Should the borrower’s loan become delinquent for 60 days or more, Flovel would ensure the repayment to Mintos Finance of the respective part of the loan received from Mintos Finance in full, together with accrued interest and Flovel would ensure the buyback of the claims on this loan from investors.
A description of the structure is available in the Mintos Finance loan agreement and assignment agreement.
Dinero Ukraine, Metrokredit Russia and Sebo Moldova belong to the same group. Some of the equity investors in the loan originator and Mintos overlap.