Following Eleving Group’s strategy to consolidate investments in its best-performing markets, a decision has been made to exit from the Bulgaria market.
Mogo Bulgaria has been sold to a local conglomerate, Eurolease Group, one of the largest Bulgarian public companies1,2 with operations in the industries of insurance, utilities, auto sales, financial and operating leasing.
The transaction has been reviewed and approved by the Competition on Protection Commission of the Republic of Bulgaria and the sale was finalised on 1st December 2021.
What does this mean for investors on Mintos?
Mogo Bulgaria’s entity will not be continuing listing new loans, and the existing exposure will amortise according to the current schedules. Eurolease Group has provided its group’s guarantee that will replace the current Eleving Group guarantee, ensuring a corresponding level of security for investors on Mintos.
Meanwhile, Eleving Group will continue to increase the supply of its loans on Mintos, offering investment opportunities across multiple other countries and regions.
About Eurolease Group
Eurolease Group unites companies offering financial and operating car lease, sales of used cars and rent a car services under the brands Avis and Budget. Eurolease Group operates in Bulgaria and North Macedonia. The transaction is part of Eurolease Group’s strategy to combine the traditional lease business with innovative fintech services and to make financial lease available to the consumer segment with no access to loans from banks.
As of Q3 2021, Eurolease Group’s total assets amount to €58.4 million, with the financial lease portfolio of the subsidiaries accounting for €38.3 million. Eurolease Group’s equity amounts to €9.9 million. The company finances its activities through loans from banks and bond issues traded on the Bulgarian Stock Exchange.
About Mogo Bulgaria
Mogo Bulgaria is a company offering financial leases for used cars. The company has a lease portfolio of €6 million (as of the end of Q3 2021), servicing more than 2 500 active clients through its branch network in 14 cities across the country. Throughout the operational period, Mogo Bulgaria has shown good portfolio quality with lowest default rates among Eleving markets in the region. Up until now, Mogo Bulgaria was owned by Eleving Group (former Mogo Finance).
Some of the equity investors of Eleving Group and Mintos overlap.