On 1 March 2021, Mogo Latvia issued bonds in the amount of € 30 million, thus successfully completing the largest bond issue in recent years by a private company on Nasdaq Riga Stock Exchange. Today, on 11 March 2021, Nasdaq announced that these bonds have been listed on the Nasdaq Baltic Bond List by Nasdaq Riga.
With an annual coupon rate of 11%, 3-year maturity, and a minimum subscription amount of €1 000, the bonds were offered to existing Mogo bondholders and other retail and institutional investors from the Baltic region. The public offering consisted of two parts – subscription by new investors and exchange offer to existing bondholders.
The company reports that the bond issue was oversubscribed with more than 840 investors participating in the offering. As a result of the bond offering, the bonds` allocation is as follows – 71.4% to existing bondholders who decided to continue investment in Mogo and 28.6% of new bondholders joining the Mogo investors community. In terms of geography, the majority (73.3%) are Latvian investors, 17.7% Estonian investors, 0.3% Lithuanian investors, and 8.6% investors from other European countries.
Maris Kreics, CFO of Mogo Finance Group: “We received remarkable interest and demand from investors from all three Baltic countries, reaffirming investors’ belief in the sustainability of Mogo business model. We highly appreciate the trust of our loyal existing investors who participated in the exchange offer and welcome on board 662 new investors who have joined our investors’ community. We feel a great responsibility towards our wide international investor community and will continue our work on implementing our business strategy and maintaining high standards for operational transparency.”
The lead manager for the bonds’ issuance was “Signet Bank, AS”.
New bonds are planned to be included in the Regulated market – the Baltic Bond List of the “Nasdaq Riga” stock exchange by March 31 at the latest.
About Mogo Finance Group
Mogo Group was founded in 2012 in Latvia and joined the Mintos marketplace in 2015, originally offering loans for investment from Latvia. Since then, Mogo Group has placed loans on the marketplace from 14 countries in the Baltics and Central, Eastern and South-Eastern Europe. Operating regions also include the Caucasus and Central Asia, as well as Eastern Africa. Up to date, the company has issued over €650 million in secured loans and has a net loan and used car rental portfolio of over €202 million as of the end of 2020.
Some of the equity investors in Mogo Group and Mintos overlap.