Signet Bank participates in the arrangement and distribution of a bond issue for IuteCredit Europe (Estonia). IuteCredit had issued EUR 75 million corporate bonds to professional and retail investors through its fully owned subsidiary IuteCredit Finance s.a.r.l., following a series of European professional investor meetings as well as a public offer to retail investors in Latvia, Estonia, Lithuania and Germany.
The significantly lower coupon price and longer maturity compared to the already outstanding corporate bond have a beneficial effect on Iute’s financing structure. The Senior Secured Corporate Bonds maturing 2026 were issued at par with an interest rate of 11.0% per annum payable semi-annually. The first interest payment will be carried out on 6 April 2022.
The initial public offer of up to EUR 50 million was oversubscribed by more than EUR 35 million. Therefore, Iute decided to increase the offer by EUR 25 million in line with the strong demand and the flexibility of current financing arrangements.
The bonds were purchased by institutional investors, as well as more than 2,500 private investors from the Baltic States. Settlement is to be expected on 6 October 2021.
The new bonds are expected to be included on the Regulated Markets of both the Frankfurt Stock Exchange and the Nasdaq Tallinn Stock Exchange. First day of trading on the Frankfurt Stock Exchange is to be expected on 6 October 2021, and 7 October 2021 on the Nasdaq Tallinn Stock Exchange.
We are humble and proud because of the trust given to Iute by institutional and retail investors. The proceeds of the issue continue to support Iute in the pursuit of our mission, which is to create the extraordinary experience in the field of personal finance.
Tarmo Sild, Group CEO of IuteCredit
We are glad, that we continue our cooperation with IuteCredit and participated in the placement of the latest bond issue. We are satisfied with the strong demand from investors and expect active trading on the secondary market after the bonds are listed on the Exchange.
Edmunds Antufjevs, Head of Corporate Finance at Signet Bank
Iute – established in 2008 – is a leading European personal finance company. The Group is specialized in installment loans and instant payment services via its 100% subsidiaries using equity and loan capital. IuteCredit serves customers currently in Moldova, Albania, North Macedonia, and Bulgaria as well as Bosnia and Herzegovina.
IuteCredit’s loan products are unsecured consumer loans with maturities between 1 month and 48 months and car-secured loans with maturities up to 72 months.
The mission of Iute is to create the extraordinary experience in personal finance by exceeding customers’ expectations.
About Signet Bank
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 management and structuring financing projects. Signet Bank’s majority shareholders are a group of Latvian and international investors, which includes SIA Hansalink, AS RIT Group, and Signet Acquisition III.