After joining Mintos in March of 2018, ExpressCredit has been offering you the opportunity to invest in loans issued in the African continent. Today, the loan originator is adding a new country to the marketplace for the first time ever – Namibia.
Express Credit Cash Advance (PTY) LTD was established in 2016 and is licensed and regulated by the Namibia Financial Institutions Supervisory Authority (NAMFISA). At present, the company has 9 branches in the major cities of Namibia. As of the end of September, the company has managed to attract 11 406 unique customers and has disbursed 32 628 loans worth around EUR 8.8 million.
Looking to the future, ExpressCredit plans on expanding its network by opening 11 new branches this year, as well as expand its product base and continue to invest in brand recognition. By December 2019, the company expects its monthly issuance of loans volume to reach EUR 2.5 million.
ExpressCredit Namibia on Mintos
Namibia-issued personal loans from ExpressCredit Namibia on Mintos range from EUR 150 to EUR 1300 with a maturity of 5 months. You can expect a net annual return of up to 12%. All loans issued from the company will be listed in EUR.
All loans from ExpressCredit on Mintos are secured with a buyback guarantee and will be bought back by the company if it becomes delinquent for more than 60 days. In addition, the company will maintain 10% of each loan placed on the marketplace on its balance sheet as its skin in the game. ExpressCredit Namibia is part of the ExpressCredit Group.
As of September 30, 2019, ExpressCredit Namibia had a net loan portfolio of EUR 1.8 million. The company has seen strong revenue growth, supported by continuous investment in its branch network and systems and a positive gross profit since January of 2018. In the first three quarters of 2019, the company reported a gross profit of EUR 0.8 million and total assets of EUR 2.8 million.
Taking into consideration legal requirements and investors’ interests, investors will be able to obtain exposure to Express Credit Cash Advance (PTY) LTD loans by investing in loans issued by Mintos Finance SIA, Mintos Group company, to ExpressCredit Holding AS, an ExpressCredit group company.
The repayment of each loan issued by Mintos Finance to ExpressCredit Holding AS will be pegged to the repayment of a respective loan issued by ExpressCredit Holding AS to Express Credit Cash Advance (PTY) LTD and this loan will be pegged to the repayment of the respective loan issued by Express Credit Cash Advance (PTY) LTD to the borrower. Mintos Finance loans will be directly secured by a pledge on claims arising from Express Credit Cash Advance (PTY) LTD loans issued to borrowers.
Mintos and Express Credit Cash Advance (PTY) LTD are related parties according to IAS 24.
