AS “mogo” teamed up with Signet Bank successfully launched the public offering for bonds on February 12, which will last till 25 February 2021. It consists of two parts – exchange offer to existing bondholders and subscription by new investors, with the aim of refinancing current bonds. The annual coupon rate is 11% with payments on the bonds made on a monthly basis and maturity of up to three years. The bonds are available to investors in all three Baltic States with a minimum investment amount of EUR 1,000. The total nominal value is EUR 30,000,000.
AS “mogo” has been a member of the Latvian capital market since 2014, and during this period, the group has experienced significant growth, increasing its loan portfolio six-fold from EUR 35 million in 2014 to EUR 192 million on September 30, 2020. Continuing its purposeful development and maintaining the diversified financing structure, while approaching the maturity of the existing bonds, AS “mogo” launches another issue of bonds in the amount of EUR 30 million.
The presence on the stock exchange can provide a company with a number of benefits, and the growth of “mogo” over the past six years is a great example of that. We believe that a significant part of existing bondholders will decide in favour of continuing their successful and profitable cooperation with “mogo”, and will also be joined by a number of new investors from all over the Baltic States.”
Edmunds Antufjevs, Head of Corporate Finance at Signet Bank
Each bond’s nominal value constitutes EUR 1,000. The minimum investment amount during the initial offering is at least one bond. The bonds are planned to be included in the regulated market – the Baltic Bond List of “Nasdaq Riga” stock exchange not later than on March 31, 2021.
About the bond issue
Bond issuance is globally used as an alternative form of debt financing and offers several advantages to the issuer. These include the possibility to diversify funding sources and raise large amounts of financing, flexibility in terms of transaction structure, optimisation of cash flows and promoting the issuer’s recognition in the market. Thus, bond issuance is often a financially more attractive solution than other types of borrowing. Signet Bank offers a full range of services for successful issuance of debt securities.
The bank was founded in 1992 as Latvijas Biznesa banka. Since 2013, it has focused its strategy on servicing entrepreneurs and their businesses, with an emphasis on high-quality capital maintenance and structured investment projects. Signet Bank’s majority shareholders are a group of Latvian and international investors, which includes SIA Hansalink, SIA Fin.lv, and Signet Acquisition III.