We would like to inform you that, going forward, there is a new structure for investing in Banknote loans. Banknote has extended its license for providing consumer credit services in Latvia for an indefinite period of time. The new structure takes into account limitations imposed by the license.
How will the new process work?
To obtain exposure to Banknote loans, investors will be able to invest in loans issued by Mintos Finance to Banknote where repayments depend on the borrower’s payments. Each loan issued by Mintos Finance to Banknote will be pegged to a respective loan issued by Banknote to the final borrower.
Mintos Finance is a Mintos group company.
A detailed description of the new structure is available in the Mintos Finance loan contract and assignment agreement.
How will the new structure affect investors?
Investors making investments according to the new structure will henceforth gain exposure to Banknote-issued loans. Previously investors had direct claim against the final borrower; now investors will have a direct claim against the loan originator – in this case, against Banknote.
Taking into account that these changes affect the investment risk profile, Banknote loans will be removed from all current Auto Invest settings. To continue using the Auto Invest function to invest in Banknote loans, please renew your corresponding Auto Invest portfolio settings.
Please feel free to contact our customer service team with any questions or clarifications. We will be more than happy to assist you!
