Peer-to-peer lending marketplace Mintos reveals that on 1 March 2021, Mogo Latvia had issued bonds valued at €30 million, thus managing to successfully complete the largest bond issue in recent years by a private firm via the Nasdaq Riga Stock Exchange.
On March 11, 2021, Nasdaq confirmed that these bonds have now been listed on the Nasdaq Baltic Bond List by Nasdaq Riga, Mintos noted.
The marketplace lender added:
“With an annual coupon rate of 11%, 3-year maturity, and a minimum subscription amount of €1 000, the bonds were offered to existing Mogo bondholders and other retail and institutional investors from the Baltic region. The public offering consisted of two parts – subscription by new investors and exchange offer to existing bondholders.”
The Mintos team also mentioned that the company confirms that the bond issue was oversubscribed with over 840 different investors reportedly taking part in the offering. As a result of the bond offering, “the bonds` allocation is as follows – 71.4% to existing bondholders who decided to continue investment in Mogo and 28.6% of new bondholders joining the Mogo investors community.”
Mintos’ management further noted that in terms of geography, “the majority (73.3%) are Latvian investors, 17.7% Estonian investors, 0.3% Lithuanian investors, and 8.6% investors from other European countries.”
Maris Kreics, CFO of Mogo Finance Group, stated:
“We received remarkable interest and demand from investors from all three Baltic countries, reaffirming investors’ belief in the sustainability of Mogo business model. We highly appreciate the trust of our loyal existing investors who participated in the exchange offer and welcome on board 662 new investors who have joined our investors’ community. We feel a great responsibility towards our wide international investor community and will continue our work on implementing our business strategy and maintaining high standards for operational transparency.”
As noted by Mintos, the lead manager for the bonds’ issuance was “Signet Bank, AS”. New bonds are expected to be added to the Regulated market – “the Baltic Bond List of the “Nasdaq Riga” stock exchange by March 31 at the latest.”
Mogo Group was established in 2012 in Latvia and had first joined the Mintos marketplace back in 2015. At first, Mogo provided loans for investment from Latvia. Since that time, Mogo Group has managed to place loans via the marketplace from different 14 countries in the Baltics and Central, Eastern and South-Eastern Europe.
Additionally, Mogo’s operating regions include the Caucasus and Central Asia, and Eastern Africa. Mintos confirmed that the company has provided more than €650 million in secured loans and has “a net loan and used car rental portfolio of over €202 million as of the end of 2020.”
Mintos also noted that some of the equity investors in Mogo Group and Mintos “overlap.”