IuteCredit issues €75 million of corporate bonds to professional and retail investors

The below announcement text was provided to AS Mintos Marketplace (Mintos) by IuteCredit Finance S.a.r.l. (registered in Luxembourg under registration No. B 234678). IuteCredit Finance S.a.r.l. is a cooperation partner of Mintos and offers investment opportunities on mintos.com.

IuteCredit states that it has issued €75 million of Senior Secured Corporate Bonds (ISIN: XS2378483494) through its fully owned subsidiary IuteCredit Finance S.a.r.l., following a series of European professional investor meetings as well as a first-time public offer to retail investors in Estonia, Latvia, Lithuania, and Germany. According to IuteCredit, the proceeds of the issue will be used for financing growth in current and future markets and to refinance existing debt.

"We are humbled and proud because of the trust and credit given to Iute by institutional and retail investors. More than 2 500 retail investors have entrusted their money to us and we will start working to increase their wealth. The proceeds of the issue continue to support Iute in the pursuit of our mission, which is to create an extraordinary experience in the field of personal finance.”

Tarmo Sild, Group CEO of IuteCredit

As a result, IuteCredit has planned a rebuy of €35-40 million of loans financed on Mintos. Investors on Mintos who have invested in these loans will receive full principal repayment plus interest during this rebuy. Nevertheless, according to IuteCredit’s CEO, Tarmo Sild, IuteCredit will remain in the Mintos marketplace for the foreseeable future. The repurchase of the loan investments will take place starting 11 October 2021.

“While we will significantly decrease the share of loans financed via Mintos, we keep the presence in the platform to set a benchmark on transparency, reliability, and the best risk-return ratio.”

Tarmo Sild, Group CEO of IuteCredit

IuteCredit states that the lower coupon price and longer maturity compared to the already outstanding corporate bond (XS2033386603) have a beneficial effect on Iute’s financing structure. It also states that the Senior Secured Corporate Bonds maturing in 2026 were issued at par with an interest rate of 11.0% per annum payable semi-annually – the first interest payment will be carried out on 6 April 2022.

According to IuteCredit, the initial public offer of up to €50 million was oversubscribed by more than €35 million, therefore, it decided to increase the offer by €25 million in line with the strong demand and flexibility of current financing arrangements.

IuteCredit states that all retail subscription orders submitted of €20 million in total were allocated in full – of this, more than 2 500 retail investors from the Baltics accounted for almost €18 million. It also states that approximately 75% of the total issue volume was allocated under partial consideration of subscription orders to more than 30 institutional investors across Europe. According to IuteCredit, settlement is expected on 6 October 2021.

According to IuteCredit, the new bonds are expected to be included on the Regulated Markets of both the Frankfurt Stock Exchange and the Nasdaq Tallinn Stock Exchange. It states that the first day of trading on the Frankfurt Stock Exchange is to be expected on 6 October 2021, and for the Nasdaq Tallinn Stock Exchange, 7 October 2021.

For investors with loan investments being rebought by IuteCredit, there’s still a diverse range of investment options available on Mintos. At the moment, there’s a large supply of loans among others from IDF Eurasia, Revo, Dozarplati, Conmigo Vales, and DelfinGroup. For more, see the full list of available loan investments on the Primary Market.

For investors on Mintos with custom automated strategies, please adjust any IuteCredit settings so that your strategies can continue to be fulfilled.

About IuteCredit

IuteCredit – established in 2008 – is a European personal finance company. The Group is specialized in consumer credits via its 100% subsidiaries using equity and loan capital. IuteCredit serves customers currently in Moldova, Albania, North Macedonia, and Bulgaria as well as Bosnia and Herzegovina. IuteCredit’s loan products are unsecured consumer loans with maturities between 1 month and 36 months and car-secured loans with maturities up to 60 months. The mission of IuteCredit is to create an extraordinary experience in personal finance by exceeding customers’ expectations.

Disclaimer by AS Mintos Marketplace

The information in this publication is marketing communication only and is not considered investment advice.

Investing involves risk. There is no guarantee that you will get back any invested amounts. Past performance is no guarantee of future results. Mintos shall not be responsible for any direct or indirect loss arising from the use of the provided information.

This information in this publication is not intended as an advertisement, solicitation, offer, or recommendation to buy or sell any investments, or to engage in any other transaction. Any investment decision must be based on an analysis of the risks related to the investment. Before investing, consider your knowledge, experience, financial situation, and investment objectives.

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