Blockchain technology firm Fineqia International Inc. announced on Wednesday its U.K. subsidiary Fineqia Limited has successfully arranged for the issuance and subscription of a €2.94 million bond against assets of loan receivables. According to Fineqia, Fineqia Ltd placed the bond issued by PremFina Ltd (“PremFina”) and subscribed to by Rakuten Europe Bank S.A., a subsidiary of Rakuten, Inc.
“PremFina has created and authorized the issue of an aggregate 4% Secured Loan Notes with an aggregate nominal amount of €2.94 million The bond is issued in and subscribed to in Euros, backed by assets in the form of U.K. loan receivables from premium finance loans. This bond has a seven-month maturity term.”
Speaking about the arrangement, CEO of Fineqia, Bundeep Singh Ranga, stated:
“The successful arrangement of this bond is an extraordinary opportunity for Fineqia Ltd,” said r. “It allows Fineqia to arrange the issuance and subscriptions of high-quality debt instruments and offers PremFina new opportunities to finance its premium finance loans portfolio.”
Fineqia noted it owns a minority stake in PremFina, which it made to establish a strategic relationship with the debt originator. PremFina generates loans from the financing of insurance premiums in the U.K., making insurance more affordable for customers. Fineqia went on to add:
“Premium finance is considered high quality debt with U.K. industry loan losses at less than 0.30%. It involves paying the cost of an insurance premium to an insurance company upfront, on behalf of an insured company or person, who then repays the same amount on a monthly instalment basis, along with a finance fee.”
Fineqia notably seeks to further the ongoing democratization of financial services. The company’s platform brings crowd investors some of the most lucrative and risk-mitigated opportunities that have, until now, been mostly the privy of large financial institutions.
