JSC “mogo” is planning a new bond issue
JSC “mogo” appreciates the advantages provided by the presence on the stock exchange and wants to maintain its diversified financing structure, therefore, as the maturity of the existing bond approaches, Company announces plans to launch a new bond issue in the amount of EUR 30 million.
JSC “mogo” has been represented in the Baltic capital market since year 2014. Two years after its founding, Mogo successfully completed the issue of debt securities in the amount of EUR 20 million, which was included in the Baltic Regulated Market. Currently, Mogo is represented in the Baltic capital market with two bond issues – in the total amount of EUR 30 million.
Bonds have made significant impact in financing the growth of both – Latvian business entity JSC “mogo” and Mogo Finance Group. Mogo Group’s loan portfolio has increased six times during this period from EUR 35 million in year 2014 to EUR 192 million in 9 months year 2020.
Modestas Sudnius, CEO of Mogo Finance Group: “We appreciate the trust shown by our investors over the years, therefore we will be happy to offer Baltic investors a new opportunity to invest in the bonds of the Group’s flagship company – Latvian enterprise JSC “mogo”. We see bonds as an important tool in financing the Group’s growth, and we are glad that over the years investor interest in both JSC “mogo” and Mogo Finance bonds has grown, thus creating a wide community of investors from around the world through both – Eurobonds and Latvian bonds, and peer-to-peer marketplace Mintos.
New bonds issue expected terms:
|Issuer||AS «mogo» (Latvia)|
|Guarantors||Mogo Finance S.A. guarantee|
|Issue size||EUR 30 000 000|
|Coupon rate||11%, paid monthly|
|Term||3 years (bullet)|
|Nominal value||EUR 1 000|
|Listing||Nasdaq Baltic regulated market|
|Use of proceeds||Refinancing|
JSC “mogo” would like to maintain cooperation with all existing investors, therefore those LV0000801363 and LV0000880029 bondholders who want to continue investing in Mogo bonds will be offered the opportunity to exchange existing bonds for the new ones, in exchange for a 2% premium paid together with the first new bond coupon payment.
Offer to the existing bondholders:
|Rollover premium||2% of the invested amount|
JSC “mogo” is planning to launch the offer in February 2021 after receiving the necessary approvals from the Regulator. We expect that any interested person, both retail and institutional investors, will have the opportunity to participate in the bond issue.
About AS “mogo”
AS “mogo” is part of international FinTech Group – Mogo Finance. AS “mogo” offers classical finance lease, leaseback and long term rent available in the most convenient way for the customer – online, by phone and at more than 280 affiliated car dealerships. AS “mogo” has more than 13 thousand active customers in Latvia.
Mogo Finance Group, keeping car lending business as predominant, also utilizes consumer lending in selective markets as a strategic capital allocation vehicle to leverage its performance and customer base. Recognizing the niche underserved by traditional lenders, Mogo Finance provides financial inclusion and disruptively changes the used car and consumer financing industry across its countries. Up to date the Company has issued over EUR 585 million secured loans and running a net loan and used car rent portfolio of over EUR 192 million. Mogo offers secured loans up to EUR 15,000 with a maximum tenor of 84 months making used car financing process convenient, both for its customers and partners. Wide geographical presence and diversified revenue streams grant Mogo with unique scale and pace. Mogo Finance operates a multi-channel fintech approach through its own branch network, more than 2,000 partner locations and a strong online presence. Established in 2012, with headquarters in Riga, Latvia, Mogo Finance operates in 14 countries in Baltics and Europe with a strong focus on GDP-dynamic countries in Central, Eastern and South-Eastern Europe. Operating regions also include the Near East, the Caucasus and Central Asia as well as Eastern Africa.
Read more: www.mogofinance.com
Maris Kreics, Group Chief Financial Officer (CFO)