Mintos is happy to announce that on June 25, 2018, Mogo group issued a bond worth EUR 50 million, with an annual interest rate of 9.5% (ISIN XS1831877755). The settlement of the bond is to be expected on July 11, 2018. On the same date, the bond with a denomination of EUR 1 000 will be available on the secondary market of the Frankfurt Stock Exchange (the Open Market of the Frankfurt Stock Exchange) for retail investors.
The size and coupon rate of the bond is a great milestone for Mogo. It indicates the growth and maturity of the group and indicates Mogo’s ability to originate and service its loans at scale. It also showcases the company is being recognised by institutional investors across Europe.
The bond issue was completed within less than a week and was comfortably oversubscribed. 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.
Mogo will use part of the bond’s proceeds to refinance some of their loan book on the marketplace. From July 11, 2018, Mogo is considering to repurchase loans from Mintos investors using their call option as stipulated in the assignment agreement.
Currently, total loans outstanding on Mintos by Mogo amount to around EUR 85 million. Mogo’s net loan portfolio amounts over EUR 120 million. We will provide you with more information on the expected repurchases in the coming days.
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, Belarus, Bulgaria, Estonia, Georgia, Latvia, Lithuania, Moldova, Poland and Romania.