Eleving Group Issues €50M in New Bonds

Eleving Group issued €50 million in senior secured and guaranteed bonds.

Approximately 2 000 retail and institutional investors “from the Baltic States and Germany have exchanged or subscribed to Eleving Group’s new bonds.”

During the issue, Eleving Group reportedly “offered senior secured and guaranteed bonds with maturity in 2028, a nominal value of €100, and a fixed coupon rate of 13%.”

The interest will be “paid quarterly.”

Modestas Sudnius, the CEO of Eleving Group, said:

“The result achieved this time around can be considered as a success. Volume-wise, this already is one of the largest corporate public bond offerings carried out in the Baltics in recent years. Additionally, we see this issue as a great success for further diversification of our funding structure, given that we have onboarded over 1,500 new investors from numerous geographies without dependence on one or a few institutional investors. Also, the new bonds will improve our debt maturity profile, given that they have a maturity date four years later than Mogo AS 2021/2024 bonds. We have reached the point where the next big maturity is three years away, which gives us considerable time to prepare for it.”

The new bonds are “expected to be listed on the regulated market of the Frankfurt Stock Exchange on or around 31 October.”

On the regulated market of the Nasdaq Riga Stock Exchange, “the listing date is set on or around 6 November.”

The proceeds from the bonds “will be mainly used to refinance the group’s liabilities, including €20 million (roughly 26% out of Eleving Group’s outstanding investments on Mintos) to rebuy loans financed on Mintos.”

Investors on Mintos who have “invested in these loans will receive the full principal repayment plus interest during this rebuy.”

Eleving Group plans that the rebuy will “affect all the countries, and it is scheduled to begin gradually in the near future.” Eleving Group will repurchase “both performing and non-performing loans from investors and will continue to offer investment opportunities to investors on Mintos.”

Maris Kreics, the CFO of Eleving Group, said:

“Together with the successful bond issuance, the Mintos platform will continue to play an instrumental role in the Group’s funding structure. We greatly appreciate that a significant number of Mintos investors have expressed their trust in our company and have invested in our products on the platform, so we plan to continue to maintain both our existing and offer new investment opportunities in some of our markets.”

Mintos received over 4 500 orders, “amounting to over €1.5 million for the first Eleving Fractional Bond on Mintos.” This offer is currently “sold out, and the next opportunity to invest in Eleving Fractional Bonds on Mintos is coming soon.”

Some equity investors of Eleving Group and Mintos “overlap.”

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