Mogo Finance places EUR 25 million tap on existing 9.50% corporate bond 2018/2022

Mogo group has successfully placed a EUR 25 million tap issue of its 9.50% corporate bond 2018/2022 (XS1831877755) at 95% plus accrued interest. Listing of the bonds on the Frankfurt Stock Exchange’s regulated market (General Standard) is based on the securities prospectus approved by the CSSF (Luxembourg supervisory authority).

The total amount outstanding of Mogo Finance’s 9.50% corporate bonds 2018/2022 (XS1831877755) amounts to EUR 100 million. The tap issue is a great success for Mogo and shows the trust of their investors in the sustainable business model of the company. 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.

The settlement took place on November 13, 2019. Mogo will use part of the bond’s proceeds to refinance some of the loans funded through Mintos Marketplace. From November 15, 2019, over the following two weeks Mogo is considering to repurchase up to EUR 25 million of loans issued to borrowers in Bulgaria, Estonia, Georgia, Latvia, Lithuania, Moldova, Poland, Romania and Armenia and funded through Mintos using their call option as stipulated in the assignment agreement. Mogo intends to proportionally repurchase up to 33% of each countries portfolio.

Mogo will repurchase both performing and non-performing loans from investors. The composition of loans that will be repurchased will reflect the composition of all loans originated by Mogo, with the same loan parameters in the respective country, and currently outstanding on Mintos.

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.

Mogo currently operates in Latvia, Estonia, Lithuania, Georgia, Poland, Romania, Bulgaria, Moldova, Albania, Belarus, Armenia, Uzbekistan, Kazakhstan and North Macedonia.

As a continuously expanding A rated Loan Originator, Mogo is strongly committed to continue funding part of its loan book through Mintos in the nearest future.

Alternative investments to Mogo group

On Mintos, Mogo group offers car and personal loans for investment from the above-mentioned countries. However, there are many loan originators with similar investment offerings on the marketplace.

We have summarized the most similar investment opportunities in terms of investment type (car and personal loans) and in terms of expected returns, so you can easily re-invest your funds should Mogo repurchase some of your investments.

Other suitable loan originators include:

– Everest Finanse loans from Poland
– Akulaku’s loans issued in Indonesia
– ID Finance loans from Spain and Kazakhstan
– IuteCredit loans from Moldova
– Kredit Pintar loans issued in Indonesia
– Watu Credit loans issued in Kenya
– ExpressCredit loans from Botswana