We’re excited to announce that we just launched new Fractional Bonds on Mintos! This is our first Fractional Bonds offer from iCotton, a manufacturing company with products exported all over Europe, operating since 2011. In the first 9 months of 2023, iCotton Group reached a revenue of more than €50 million, and an EBITDA of almost €8 million.
iCotton will issue €20 million in private senior secured bonds with maturity in 3.5 years and a bullet repayment structure, where the principal that is borrowed is paid back at maturity. This issue has an annual coupon rate of 6% + 3M EURIBOR (9.975% for the first calculation period) and the coupon is paid quarterly. iCotton Fractional Bonds on Mintos are linked to the original bonds issue and have the same maturity and interest.
Supply is limited for these Fractional Bonds. Investment for iCotton Fractional Bonds on Mintos ends 15 December.
Private placement
Private placement is a unique opportunity for investors on Mintos, as private placement investment is traditionally only open to individual investors with hundreds of thousands of euros to invest. iCotton bonds are exclusive to Mintos in the form of Fractional Bonds, starting at just €50. This is our first Fractional Bonds offer linked to a major manufacturing company. This offer further allows investors to diversify their portfolio, as iCotton is a completely new industry to investors on Mintos.
iCotton: a sustainable manufacturing company
iCotton was established in Latvia in 2011 and is a part of the iCotton Group of companies. iCotton Group manufactures hygiene and cosmetic products and is the leading producer of hygiene products in Poland and the Baltic States, emphasizing sustainability in its brand. In 2023, iCotton solidified its commitment to sustainability by ensuring that 100% of the energy consumed is produced with power from renewable sources.
iCotton bond details
Key features of the bonds:
- Coupon rate and coupon payment frequency: The high-yield bond offers a coupon rate of 6% + 3M EURIBOR (9.975% for the first calculation period) with quarterly payments. The maturity date is set for 3.5 years.
- Private offering details: iCotton is offering up to €20 million in senior secured bonds, only being offered to investors on Mintos as Fractional Bonds, rather than publicly on the open market.
- Investors who wish to cash out early may do so on the Mintos Secondary Market.
Security for the iCotton bond, to which Mintos iCotton Fractional Bonds are linked, consists of the following: mortgage on real estate in Poland and Latvia, a commercial pledge on fixed assets in Poland and Latvia, a commercial pledge on trademarks, and a commercial pledge on the shares of SIA iCotton.1 iCotton also has a corporate guarantee from its subsidiary Harper Hygienics S.A. (Poland).
About iCotton Group
iCotton Group was established in 2011 and is an international manufacturer specializing in cotton and personal care products. Over the years, the company has diversified its range of products such as cotton pads, cotton buds, underpads, wet wipes, and sanitary pads. In 2017, the company acquired a majority stake in Harper Hygienics SA, a Polish manufacturer listed on the Warsaw Stock Exchange. The company’s home markets, Poland and the Baltics, contribute to 45% of the 2022 revenue, while exports to the European Union and 40 other countries constitute the remaining 55%. iCotton expanded to North America in 2023 by acquiring Hempress Hygienics Inc., a U.S.-based company, specializing in hemp fiber technology and sustainable feminine care products. To actively reduce its carbon footprint, iCotton uses recyclable packaging, and invests in efficient equipment and energy-saving technologies. Key brands of iCotton include Cleanic, Kindii, and Presto, distributed at retail stores such as Rossmann, Drogas, Rimi, Tesco, Lidl, and more.
Want to know more about Fractional Bonds? If you’re new to the world of bonds and want to understand more about how they work, we’ve put together resources to help you get started and make informed investment decisions.
Do you have questions about Fractional Bonds on Mintos? You’re welcome to share your questions in the Fractional Bonds thread on the Mintos Community.
1 First rank pledges in Latvia, first rank pledges in Poland (partly pari passu shared with Altum AIF)
