Updated 30.12.2019
Investments in loans on Mintos marketplace may come with a number of risk mitigation factors. One of them is a corporate guarantee where a third party, typically the loan originator’s parent company guarantees the fulfilment of the loan originator’s obligations, including buyback obligation. It means if a loan originating company cannot fulfil its contractual agreements towards an investor on Mintos, the parent company of that loan originator has to step in and meet the loan originating company’s obligations towards the investors.
EAG Finance A.S., the parent company of two loan originators – Ukrpozyka and Dinero, also a member of the Finko group, covers parent company guarantee to loans issued by both loan originators. Both are listed under the name of Finko Ukraine on the Mintos marketplace. Some of the equity investors of EAG Finance and Mintos overlap.
This means, that in case Ukrpozyka or Dinero fails to fulfil any monetary claims arising from loan agreements, EAG Finance A.S. is obliged to fulfil these obligations on behalf of the loan originators.
For example, if a loan with a buyback guarantee is late for more than 60 days and the loan originator is not able to buy back the loan, EAG Finance A.S. will have to buy it back.
Also, to answer a question some of the investors shared with our Investor Service team, both loan originators are different legal entities, yet both belong to the same parent company, making the parent company guarantee of both loan originators equally effective. If you are an Auto Invest user, this is also the reason why, when selecting Finko Ukraine loans in Auto Invest, you would invest in both of these entities.
A new lending company from Ukraine, Ukrpozyka, a member of Finko group, has just joined the Mintos marketplace. Now you can invest in short-term loans issued in Ukraine and enjoy returns of up to 13%.
Ukrpozyka is an innovative consumer online lending company which gives its clients the opportunity to receive a loan instantaneously after filling an online application. Established in 2019, Ukrpozyka LLC was licensed by the local regulatory body, Non-Bank Financial Institutions Regulatory Authority. The average Ukraine-issued personal loan from Ukrpozyka is around € 140. The repayment period is up to 30 days in a single instalment.
As of the end of November 2019, just over 3 months after launching operations, Ukrpozyka had a net loan portfolio of more than € 3 million. The company had instant traction and demonstrated significant volumes of loans issued as a result of strong marketing campaign using celebrity endorsement. Over the following 3 months period, issuance volumes are expected to increase several times reaching EUR 6 million a month.
Ukrpozyka on Mintos
All loans from Ukrpozyka on Mintos are secured with a buyback guarantee and will be bought back by the company if they become delinquent for more than 60 days. The company will compensate the interest to the investor while the loan is in delay. In addition, the company will maintain 10% of each loan placed on the marketplace on its balance sheet.
Taking into consideration the legal requirements and investors’ interests, investors will be able to obtain exposure to Ukrpozyka loans by investing in loans issued by Mintos Finance SIA, Mintos Group company, to Flovel, a Finko group company.
The repayment of each loan issued by Mintos Finance to Flovel will be pegged to the repayment of a respective loan issued by Flovel to Ukrpozyka and this loan will be pegged to the repayment of the respective loan issued by Ukrpozyka to the borrower. Mintos Finance loans will be directly secured by a pledge on claims arising from Ukrpozyka loans issued to borrowers.
By investing in Ukrpozyka loans, you have the opportunity to diversify your investment portfolio as well as invest in Ukraine’s short-term loan market. If you use Auto Invest and want to invest, be sure to update your settings!
Should the borrower’s loan become delinquent for 60 days or more, Flovel would ensure the repayment to Mintos Finance of the respective part of the loan received from Mintos Finance in full, together with accrued interest and Flovel would ensure the buyback of the claims on this loan from investors.
A description of the structure is available in the Mintos Finance loan agreement and assignment agreement.
Enjoy this great opportunity to invest in Ukraine-issued loans from Ukrpozyka. If you use Auto Invest, then be sure to update your portfolio settings accordingly so you don’t miss out!
