Mintos is happy to announce that on November 9 Mogo group has successfully placed the tap issue of EUR 25 million of their corporate bond 2018/2022 (XS1831877755) at a coupon rate of 9.50%. After the tap issue, the total amount outstanding of Mogo corporate bond issued in Frankfurt Stock Exchange amounts to EUR 75 million.
The tap issue was completed within less than a week and was comfortably oversubscribed. The rapid tap issue is a great success for Mogo and shows the trust of their investors in the sustainable business model of the company. The proceeds from the bond will support Mogo’s continued growth in Europe, diversify their funding sources, and bring down the weighted average cost of financing.
The settlement is expected on November 16, 2018. Mogo will use part of the bond’s proceeds to refinance some of the loans funded through Mintos Marketplace. From November 20, 2018, over the following two weeks Mogo is considering to repurchase up to EUR 25 million of loans issued to borrowers in Bulgaria, Estonia, Georgia, Latvia, Lithuania, Moldova, Poland, and Romania and funded through Mintos using their call option as stipulated in the assignment agreement. Mogo intends to proportionally repurchase up to 45% of each countries portfolio.
Mogo will repurchase both performing and non-performing loans from investors. The composition of loans that will be repurchased will reflect the composition of all loans originated by Mogo, with the same loan parameters in the respective country, and currently outstanding on Mintos.
Currently, total loans outstanding on Mintos by Mogo amount to around EUR 59 million. Mogo’s net loan portfolio amounts over EUR 130 million.
Mintos provides a flexible and scalable funding model and Mogo will continue funding a significant part of their loan volume through Mintos. Since its launch on the marketplace, Mogo has successfully used Mintos to grow its portfolio and, at the same time, offer investors the opportunity to invest in its loans and earn great returns. The company will continue to do so in the future for the existing countries available on Mintos. The company is also planning to offer even more loans from new countries to investors on Mintos.
Mogo now operates in Albania, Armenia, Belarus, Bulgaria, Estonia, Georgia, Latvia, Lithuania, Moldova, Poland, Romania and Ukraine.
