Non-bank car loan provider Mogo has added car loans issued in Romania to its offering on the Mintos marketplace. Thus, Romania is the the fifth Mogo Group market represented on Mintos, alongside Estonia, Latvia, Lithuania and Poland.
Mogo is one of the top loan originators on the Mintos marketplace. Mogo joined Mintos in March 2015, and has since funded car loans worth EUR 54 million through the marketplace. To date, the average net annual return offered for Mogo loans has been 12.3%.
“We are very happy to provide more diversity to our current and new investors on the Mintos marketplace by adding loans issued in one of our most promising new markets,” says Maris Kreics, CFO of Mogo Finance.
The new loans Mogo will place on the Mintos marketplace will range from EUR 500 to EUR 10 000, with a repayment period of up to 72 months. The average net annual return to investors will range from 8 to 14%.
Loans with and without the buyback guarantee will be offered. Mogo Group has committed via a Letter of Comfort to provide additional intragroup funding to Mogo Romania, if needed to meet obligations to investors.
To retain its skin in the game, Mogo will keep at least 5% of each loan placed on the Mintos marketplace.
With a total of more than EUR 300 million in loans originated since the company was founded in 2012, Mogo Group is the largest non-bank car loan provider in the region, with operations in Latvia, Lithuania, Estonia, Georgia, Poland, Bulgaria and Romania. Mogo started operations in Romania in January 2017. To date, loans worth EUR 1.5 million have been issued.
The typical Mogo customer is an economically active person with a stable income for whom comfort, mobility and time are important factors in their daily life.
The aggregate net loan portfolio of Mogo Group was EUR 80 million as of June 2017. The company has EUR 12 million in equity and EUR 90 million in assets. Mogo Group has demonstrated consistent profitability. Last year, it generated EUR 6 million in net profit.
Mogo Group currently employs more than 200 people, while the number of active customers exceeds 35 000. See more information about the performance of Mogo Group in this presentation.
To obtain exposure to Mogo Romania loans, investors will be able to invest in loans issued by Mintos Finance, a Mintos group company, to Mogo Romania where repayments depend on the borrower’s payments. Each loan issued by Mintos Finance to Mogo Romania will be pegged to a respective loan issued by Mogo Romania to the final borrower. A detailed description of the structure is available in the Mintos Finance loan contract and assignment agreement.