Investor news

Mogo Finance announces settlement and listing of EUR 50 million corporate bonds on the Frankfurt Stock Exchange

Mogo Finance announces settlement and listing of EUR 50 million corporate bonds

Riga, Latvia, 11 July 2018. Mogo Finance and its group companies (the “Group”), specialized in used car financing, announce the settlement and listing of a 4-year corporate bonds (XS1831877755) in the Open Market of the Frankfurt Stock Exchange. The Holding Company of the Group, Mogo Finance, issued oversubscribed EUR 50 million of bonds at par with an annual interest rate of 9.50%.

An application to list the bonds to trading on the Regulated Market will be done within 4 months thereafter.

Edgars Egle, CEO of the Group, commented:

"Listing of our latest bond at the Frankfurt Stock Exchange marks the next step of our growth strategy in Europe to build a leading position in the second-hand car financing sector. The interest of European investors underlines the prospects of our business model. With the upcoming inclusion of our 4-year bond in the Regulated Market of Deutsche Börse, we will also further intensify our capital markets communication thus raising market awareness of used car financing."

Mogo Finance (CFO)
Maris Kreics
Email: maris.kreics@mogofinance.com
+371 66 900 900

Aalto Capital
Manfred Steinbeisser +49 89 89867770
Email: manfred.steinbeisser@aaltocapital.com
Helmut Stichlmair

Notes to Editors:

Mogo Finance is one of largest and fastest growing secured used car financing companies in Europe. Recognizing the niche in used car financing underserved by traditional lenders, Mogo Finance has expanded its operations to 10 countries issuing over EUR 250 million up to date and running a net loan portfolio over EUR 120 million. Mogo offers secured loans up to EUR 10 000 with maximum tenor of 72 months making used car financing process convenient, both for its customers and partners. Wide geographical presence makes Mogo unique over its rivals and diversifies revenue streams.

Mogo Finance operates through its own branch network, more than 2 000 partner locations and strong online presence. Physical footprint makes Mogo Finance a top of mind brand in used car financing. Established in 2012, headquartered in Riga, Latvia and operating in: Latvia, Estonia, Lithuania, Georgia, Poland, Romania, Bulgaria, Moldova, Albania, Belarus. www.mogofinance.com.

IMPORTANT INFORMATION

The information contained herein is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the United States, Australia, Canada, Hong Kong, Japan, New Zealand, South Africa or any other countries or otherwise in such circumstances in which the release, publication or distribution would be unlawful. The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the bonds in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction. Persons into whose possession this announcement may come are required to inform themselves of and observe all such restrictions.

This announcement does not constitute an offer of securities for sale in the United States. The bonds have not been and will not be registered under the Securities Act or under the applicable securities laws of any state of the United States and may not be offered or sold, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

This announcement does not constitute a prospectus for the purposes of Directive 2003/71/EC, as amended (the “Prospectus Directive”) and does not constitute a public offer of securities in any member state of the European Economic Area (the “EEA”).

This announcement does not constitute an offer of bonds to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the bonds. Accordingly, this announcement is not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of this announcement as a financial promotion may only be distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i), (ii) and (iii) above together being referred to as “Relevant Persons”). Any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this announcement or any of its contents.

PROFESSIONAL INVESTORS ONLY – Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) has been prepared as the bonds do not constitute packaged products and will be offered to eligible counterparties and professional clients only.

Mogo Finance S.A.: Mogo Finance issues EUR 50 million corporate bond

Mogo Finance issues EUR 50 million corporate bond

Riga, Latvia, 25 June 2018. Mogo Finance and its group companies (the "Group"), specialized in used car financing, announce the successful issuance of a 4-year corporate bond (XS1831877755). The Holding Company of the Group, Mogo Finance, issued today EUR 50 million of bonds at par with an annual interest rate of 9.50%. Settlement to be expected on 11July 2018. The issue was comfortably oversubscribed.

The new bonds are expected to be included in the Open Market of the Frankfurt Stock Exchange on or about 11 July 2018. An application to list the bonds to trading on the Regulated Market will be done within 4 months thereafter.

KNG Securities (UK) acted as lead manager with Bankhaus Scheich Wertpapierspezialist AG (Germany) and RP Martin Stockholm AB (Sweden) as co-managers. Blue Orange Bank and Frigate AS acted as regional sales agents. Aalto Capital (Germany) acted as advisor and global coordinator to the Group.

Edgars Egle, CEO of the Group, commented:

"We are pleased to have attracted a number of new investors from all across Europe. The proceeds will support our continued growth in Europe and optimize our cost of borrowing. This 4 year issue further diversifies our funding sources as we are continuing to build a leading position in the European second hand car financing sector."

Mogo Finance (CFO)
Maris Kreics
Email: maris.kreics@mogofinance.com
+371 66 900 900

Aalto Capital
Manfred Steinbeisser +49 89 89867770
Email: manfred.steinbeisser@aaltocapital.com
Helmut Stichlmair

Notes to Editors:

Mogo Finance is one of largest and fastest growing secured used car financing companies in Europe. Recognizing the niche in used car financing underserved by traditional lenders, Mogo Finance has expanded its operations to 10 countries issuing over EUR 250 million up to date and running a net loan portfolio over EUR 120 million. Mogo offers secured loans up to EUR 10 000 with a maximum tenor of 72 months making used car financing process convenient, both for its customers and partners. Wide geographical presence makes Mogo unique over its rivals and diversifies revenue streams.

Mogo Finance operates through its own branch network, more than 2 000 partner locations and strong online presence. Physical footprint makes Mogo Finance a top of mind brand in used car financing. Established in 2012, headquartered in Riga, Latvia and operating in: Latvia, Estonia, Lithuania, Georgia, Poland, Romania, Bulgaria, Moldova, Albania, Belarus. www.mogofinance.com.

IMPORTANT INFORMATION

The information contained herein is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the United States, Australia, Canada, Hong Kong, Japan, New Zealand, South Africa or any other countries or otherwise in such circumstances in which the release, publication or distribution would be unlawful. The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the bonds in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction. Persons into whose possession this announcement may come are required to inform themselves of and observe all such restrictions. None of Mogo Finance, KNG Securities LLP, RP Martin Stockholm AB, Bankhaus Scheich Wertpapierspezialist AG or their respective representatives accept any legal responsibility for any violation by any person, whether or not the persons contemplating investing in or divesting Mogo’s securities, including the bonds, are aware of such restrictions.

This announcement does not constitute an offer of securities for sale in the United States. The bonds have not been and will not be registered under the Securities Act or under the applicable securities laws of any state of the United States and may not be offered or sold, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

This announcement constitutes advertising material and is meant as preliminary information about an upcoming securities offering by the Issuer for sounding general investor interest. This document in particular does not constitute a prospectus for the purposes of Directive 2003/71/EC, as amended (the “Prospectus Directive”) and does not constitute a public offer of securities in any member state of the European Economic Area (the “EEA”).

This announcement does not constitute an offer of bonds to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the bonds. Accordingly, this announcement is not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of this announcement as a financial promotion may only be distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i), (ii) and (iii) above together being referred to as “Relevant Persons”). Any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this announcement or any of its contents.

PROFESSIONAL INVESTORS ONLY - Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) has been prepared as the bonds do not constitute packaged products and will be offered to eligible counterparties and professional clients only.

Mogo Finance S.A. opens books for initial bond offering

Issue amount up to EUR 50 million

Riga, Latvia, 19 June 2018. Mogo Finance S.A. announces the start of the subscription period for its corporate bonds (XS1831877755).

The Company expects gross proceeds of up to EUR 50 million. At a semi-annual interest payment frequency, the maturity of the bonds is four years. The actual price indication of the senior secured bonds is between 9.25% and 9.75%. The minimum subscription volume is EUR 100,000, and the bonds are denominated at EUR 1,000. The proceeds of the bond issue will be used to refinance existing indebtedness and general business purposes.

Upon the settlement day, the bonds are to be traded on the Open Market of the Frankfurt Stock Exchange. Four months after the issue date the bonds are to be included in the Regulated Market.

Mogo Finance with a successful track record in issuing bonds has extensive experience in raising funds at the stock exchange.

For more information, please contact:

Mogo Finance (CFO)
Maris Kreics
Email: maris.kreics@mogofinance.com
+371 (26) 128020

Aalto Capital
Manfred Steinbeisser +49 89 89867770
Email: manfred.steinbeisser@aaltocapital.com
Helmut Stichlmair

Notes to Editors:

Mogo Finance is one of largest and fastest growing secured used car financing companies in Europe. Recognizing the niche in used car financing underserved by traditional lenders, Mogo Finance has expanded its operations to 10 countries issuing over EUR 300 million up to date and running a net loan portfolio over EUR 120 million. Mogo offers secured loans up to EUR 10 000 with maximum tenor of 72 months making used car financing process convenient, both for its customers and partners. Wide geographical presence makes Mogo unique over its rivals and diversifies revenue streams thus providing extra security.

Mogo Finance operates through its own branch network, more than 2 000 partner locations and strong online presence. Physical footprint makes Mogo Finance top of mind brand in used car financing. Established in 2012, headquartered in Riga, Latvia and operates in: Latvia, Estonia, Lithuania, Georgia, Poland, Romania, Bulgaria, Moldova, Albania, Belarus. www.mogofinance.com.

IMPORTANT INFORMATION

The information contained herein is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the United States, Australia, Canada, Hong Kong, Japan, New Zealand, South Africa or any other countries or otherwise in such circumstances in which the release, publication or distribution would be unlawful. The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the bonds in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction. Persons into whose possession this announcement may come are required to inform themselves of and observe all such restrictions. None of Mogo Finance, KNG Securities LLP, RP Martin Stockholm AB, Bankhaus Scheich Wertpapierspezialist AG or their respective representatives accept any legal responsibility for any violation by any person, whether or not the persons contemplating investing in or divesting Mogo’s securities, including the bonds, are aware of such restrictions.

This announcement does not constitute an offer of securities for sale in the United States. The bonds have not been and will not be registered under the Securities Act or under the applicable securities laws of any state of the United States and may not be offered or sold, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

This announcement constitutes advertising material and is meant as preliminary information about an upcoming securities offering by the Issuer for sounding general investor interest. This document in particular does not constitute a prospectus for the purposes of Directive 2003/71/EC, as amended (the “Prospectus Directive”) and does not constitute a public offer of securities in any member state of the European Economic Area (the “EEA”).

This announcement does not constitute an offer of bonds to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the bonds. Accordingly, this announcement is not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of this announcement as a financial promotion may only be distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i), (ii) and (iii) above together being referred to as “Relevant Persons”). Any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this announcement or any of its contents.

PROFESSIONAL INVESTORS ONLY – Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) has been prepared as the bonds do not constitute packaged products and will be offered to eligible counterparties and professional clients only.

Mogo Finance conducts European investor roadshow

EUR bond offering may follow

Riga, Latvia, 3 May 2018. Mogo Finance S.A. and its group companies (the “Group”), specialized in used car financing, announces that it is conducting a series of investor meetings in Europe. The pan-European roadshow begins on 4 May 2018 and will take up to three weeks. A EUR bond offering up to 75 million may follow, subject to market conditions. KNG Securities LLP (UK), Bankhaus Scheich Wertpapierspezialist AG (Germany) and RP Martin Stockholm AB (Sweden) have been appointed so far to arrange the roadshow.

For more information, please contact:

Mogo Finance (CFO)
Maris Kreics
Email: maris.kreics@mogofinance.com
+371 (26) 128020

Aalto Capital
Manfred Steinbeisser +49 89 89867770
Email: manfred.steinbeisser@aaltocapital.com
Helmut Stichlmair

Notes to Editors:

Mogo Finance is one of largest and fastest growing secured used car financing companies in Europe. Recognizing the niche in used car financing underserved by traditional lenders, Mogo Finance has expanded its operations to 10 countries issuing over EUR 250 million up to date and running a net loan portfolio over EUR 120 million. Mogo offers secured loans up to EUR 10 000 with maximum tenor of 72 months making used car financing process convenient, both for its customers and partners. Wide geographical presence makes Mogo unique over its rivals and diversifies revenue streams thus providing extra security.

Mogo Finance operates through its own branch network, more than 2 000 partner locations and strong online presence. Physical footprint makes Mogo Finance top of mind brand in used car financing. Established in 2012, headquartered in Riga, Latvia and operates in: Latvia, Estonia, Lithuania, Georgia, Poland, Romania, Bulgaria, Moldova, Albania, Belarus. www.mogofinance.com.

IMPORTANT INFORMATION

The information contained herein is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the United States, Australia, Canada, Hong Kong, Japan, New Zealand, South Africa or any other countries or otherwise in such circumstances in which the release, publication or distribution would be unlawful. The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the bonds in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction. Persons into whose possession this announcement may come are required to inform themselves of and observe all such restrictions. None of Mogo Finance, KNG Securities LLP, RP Martin Stockholm AB, Bankhaus Scheich Wertpapierspezialist AG or their respective representatives accept any legal responsibility for any violation by any person, whether or not the persons contemplating investing in or divesting Mogo’s securities, including the bonds, are aware of such restrictions.

This announcement does not constitute an offer of securities for sale in the United States. The bonds have not been and will not be registered under the Securities Act or under the applicable securities laws of any state of the United States and may not be offered or sold, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

This announcement constitutes advertising material and is meant as preliminary information about an upcoming securities offering by the Issuer for sounding general investor interest. This document in particular does not constitute a prospectus for the purposes of Directive 2003/71/EC, as amended (the “Prospectus Directive”) and does not constitute a public offer of securities in any member state of the European Economic Area (the “EEA”).

This announcement does not constitute an offer of bonds to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the bonds. Accordingly, this announcement is not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of this announcement as a financial promotion may only be distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i), (ii) and (iii) above together being referred to as “Relevant Persons”). Any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this announcement or any of its contents.

PROFESSIONAL INVESTORS ONLY – Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) has been prepared as the bonds do not constitute packaged products and will be offered to eligible counterparties and professional clients only.

Join the Mogo campaign and get a cashback of up to 5%!

2018 01 16 6f1dc664103003a0ec0fe9998da6660650b0680213211c07e59f1f66e27613d9

Until February 16, 2018, invest in Mogo loans with a maturity of four years or more and get a cashback immediately. You will get an instant cashback of:
- 4% for investing in Mogo loans with a maturity of 48 to 59 months,
- 5% for investing in Mogo loans with a maturity of 60 months or more.

Only investments made on the Mintos primary market qualify.

To receive the cashback, you have to be enrolled in the campaign before making the investment. Enrol now >
For more information read the  Terms and Conditions.

Mogo is one of the top loan originators on the Mintos marketplace. The company joined Mintos in March 2015, and has since funded car loans worth EUR 91 million through the marketplace. To date, the average net annual return offered for Mogo loans has been above 12%.

FAQ

When will I receive my cashback?

The cashback will be transferred to your Investor’s Account on Mintos within six working days from the day you make the investment.

What will happen if the loan originator will re-buy my long-term investment?

Sometimes loan originators re-buy the loans before their maturity. If this happens, you will get to keep your cashback.

Do I need to enroll each time I make a new investment?

No. To participate in the campaign, you need to enroll only once. All investments made after that will qualify for cashback.

Do investments made prior to enrolling in the campaign, qualify for cashback too?

No. Only new investments made after you have enrolled in the campaign on your Investor’s Account qualify for a cashback.

Why would I want to invest in long-term loans?

Investing long-term has many benefits. The returns offered for these loans generally are higher than returns offered on short-term loans. You get to lock-in these higher return rates for a longer period of time, thus avoiding any cash drag effect. Including longer term loans in your

Poland: A Country of Endless Possibilities

Do you want to get the best from Mintos? With so many options for investment on our marketplace, it is important to know which ones to choose. To help you with this, we present a series detailing the unique opportunities each country on Mintos offers investors, starting with Poland.

To many investors, Poland might not seem like an obvious choice. However, the alternative financial market in Poland is growing quickly. Poland currently is one of the top five largest markets in terms of the loan supply on Mintos, offering a huge diversity in the loans available for investment in both euro (EUR), Polish złoty (PLN) and even British pound (GBP).

Why Poland?

Poland’s economy has enjoyed 23 years of uninterrupted growth, making it the sixth largest economy in the European Union, and it is not looking to slow down anytime soon. According to the research company The Brookings Institution, since 1989 Poland’s GDP per capita has more than doubled and compared to economies at a similar level in development, Poland has experienced the fastest growth. The country’s economy has shown strong resilience in tough economic times and during the global financial crisis in 2008-2009 it was the only EU country to not go into recession. Poland’s strong and consistent growth is close to beating the world’s historic growth records.

Pl grown graph 22d31b9ab23d894b2bab416e6789072d4b35f6dde2e01fd2b55f48648925457e

According to figures from the Central Statistical Office of Poland, the Polish economy advanced 4.9% year-on-year in the third quarter of 2017, which was above the expected 3.4% per annum growth. Governor of the National Bank of Poland, Adam Glapiński, said: “I suspect that next year’s [2018] growth will be lower than this year’s – this year it is exceptionally high – but still very decent and close to a natural growth rate of between 3.5 and 4 percent.”

According to PwC, the economy has the potential to grow around 3% per annum until 2030 and 2.5% per annum until 2050.

Poland’s strong growth is being recognised by the experts. In October 2017, FTSE Russell reclassified Poland from being an emerging economy to a developed country. Poland is the first country in Eastern Europe to attain this status.

Demonstrating robust growth, right now Poland is one of the most promising European markets for investment. When it comes to investing in loans, economic stability means lower risk for systemic defaults stemming from country’s economic downturn.

Alternative finance market in Poland

The alternative finance market in Poland is relatively new. However, in the past several years it has been growing rapidly as the low level of debt and relatively high cost of traditional loans has sparked the appearance of many alternative financing companies in Poland. In 2015, Poland ranked amongst the top 15 countries in Europe for the volume of alternative finance.

Similar to many other countries where regulators face the challenge of finding the best regulatory approach to managing the increasing supply and demand for alternative financing and innovative financial solutions, the future of the Poland’s fintech sector and alternative finance, in particular, is dependant on advancement in regulation. If no restrictive policies are introduced, experts forecast the alternative finance market in Poland might accelerate rapidly. Statista estimates the annual growth rate of Transaction Value in the fintech market in Poland will be 14.6 % for the next five years. For investors on Mintos, this means an ongoing supply of Poland-issued loans with attractive returns on offer.

Why złoty?

One of the benefits of Mintos is the opportunity to invest in different currencies. The Polish złoty is one of the nine currencies currently on offer on Mintos.

For investors on Mintos residing in Poland, investing in złoty is the obvious choice – to avoid currency exchange fees and worries about currency rate fluctuations. However, investing in złoty is also an attractive option for investors for whom it is not their native currency as the experts say – now is the right time to do so.

At the beginning of 2017, the Polish złoty was the best performing emerging currency against the euro. Although political instability did cause some volatility in the złoty, the currency held onto its strength and gained about 5.5% versus the euro in 2017. This makes the złoty the year’s best performing currency alongside the Czech koruna according to NASDAQ.

This surge in confidence was driven by Poland’s improving growth prospects and a renewed interest among foreign investors in złoty bonds.

PLN to EUR exchange rate

Pln to eur 0f99318b2323d768b9c27b438341afc87cb337ccb5503c970b9228888518e5b7
Source: XE.com

Loans from Poland on Mintos

At Mintos, we see Poland as one of the most promising markets in Europe. To demonstrate the importance of Polish operations, Polish is one of the seven languages our website is available in. Mintos also has a representation office in Poland and has become a member of the European Fintech Forum. This allows us to stay updated on all of the latest developments in the alternative finance market in the country, create partnerships with Polish loan originators, and provide the best opportunities for investors on Mintos.

According to investment volume, currently, Poland is among top five geographies on Mintos with six active loan originators who have financed EUR 34 million worth of loans as of January 2018.

Amount financed through Mintos, million EUR as of Jan 2018

Lo financed 9ea843ba0c4e820309a1ec4c1141e0ccdcfb207826a5dfa8c7663fa2e1661c19

We have worked hard to attract the best loan originators operating on the Polish market and continue working to connect new loan originators.

The Polish market on Mintos is comprised of six active loan originators:

– Regional consumer finance giant AASA Polska;
– SME financing Aforti Finance;
– Experienced Polish consumer lender Capital Service;
– Polish branch of the international consumer lender Creditstar;
– Polish subsidiary of the international fintech GetBucks;
– Polish subsidiary of the largest regional car lease company Mogo.

Year of establishment in Poland (number of employees)

Yearestab dcc60803d80238b1889aeb41e1faba96180680b77479611cbbe408762e69d769

Because of the diversity in companies, the Polish market on Mintos can offer a variety of loans for investors. These range from business and car loans to short-term and long-term consumer loans.

Loan type available on Mintos

Loan type 61d0ee2ec48020cf3c538ceed0faca61b3170b2a14583a23ebfc84307fa4aa3f

In addition to the variety of loans available for investment on the Mintos marketplace, each loan originator offers investment opportunities both in euro (EUR) and Polish złoty (PLN). Mogo is the first one to offer its Poland-issued loans also in British pound (GBP).

All of the loan originators featured on the Mintos marketplace undergo due diligence before being accepted on Mintos. One of the key metrics evaluated in the process is the profitability of the company to secure its ability to fulfil its financial obligations towards investors on Mintos. The larger Polish lenders on Mintos have demonstrated sustainable profitability on their own, while smaller and more recently established companies are supported by a guarantee from the respective group company.

Revenues and profitability, financial year 2016

Revenues2 74586340653757e793abdc0f19ef66a737725b9068fdfda6b41a30b3df7fd41a

All of the lenders also have strong capital positions and the commitment from shareholders to ensure the continuity of the business and its ability to endure adverse market or asset quality shifts.

After the launch of the partnership, we continue monitoring loan originators’ performance on an ongoing basis to ensure their business is stable over time.

Capital structure, financial year 2016

Structure 56fbfc3afdfb667864995acf030480e38907eb2adaef876ef65f6052c55f3e47

In Summary

The Polish market has a lot to offer on Mintos, including a large variety of loans and multiple currencies for investment, as well as many options for diversification. If you would like to take advantage of these abundant opportunities, head to the Primary market on Mintos and explore the options available.

Stay tuned for our next analysis on another top market on Mintos with details on all the unique opportunities this market can do for you.

New structure for investments in Mogo loans issued in Latvia

2017 12 07 7730f3b2b5012278c90441d8f4f292db2b0ff16ad5f6c7b28c0d77a68836b06e

Starting from December 14, 2017, there will be a new structure for investing in Latvia-issued Mogo loans on the Mintos marketplace. The change has been employed to ease the administrative burden imposed by the state authorities on similar credit providers licensed in Latvia.

How will the new process work?

To obtain exposure to Mogo loans issued in Latvia, investors will be able to invest in loans issued by Mintos OU to Mogo’s legal entity in Latvia — AS “mogo”, where repayments depend on the final borrower’s payments. Each loan issued by Mintos OU to Mogo will be pegged to a respective loan issued by Mogo to the final borrower.

Mintos OU is a Mintos group company. A detailed description of the new structure is available in the Mintos OU loan agreement and assignment agreement.

How will the new structure affect investors?

Investors making investments according to the new structure will still gain exposure to Mogo-issued loans. Previously, investors had a direct claim against the final borrower; now, investors will have a claim against the loan originator – Mogo. 

Because investments made will still be pegged to the loan performance of loans issued by Mogo, current Auto Invest functions for investing in Mogo loans will remain valid for loans placed on the Mintos marketplace under the new structure. If the change in investment structure affects your investment preferences, please be sure to adjust your Auto Invest settings accordingly.

About Mogo

With a total of more than EUR 300 million in loans originated since the company was founded in 2012, Mogo Group is the largest non-bank car loan provider in the region, with operations in Latvia, Lithuania, Estonia, Georgia, Poland, Bulgaria, Romania, Armenia and Moldova. Mogo is one of the top loan originators on the Mintos marketplace. The company joined Mintos in March 2015 and has since funded car loans worth EUR 78 million through the marketplace.

Please feel free to contact us if you have any questions. We will be more than happy to assist you!

Mogo is first on Mintos to offer investments in GBP

2017 11 27 1abbe2a6d9dd07e1e681120309045ec4e7cf81825ee7e50c02cb03c35f23a8a4

Great news for investors looking to invest in British Pound (GBP)! Non-bank car loan provider Mogo now lists its loans issued in Poland in GBP on the Mintos marketplace. GBP is the eighth currency investors can invest in through Mintos.

“Seeing the rapidly growing number of investors from the United Kingdom and the high demand for loans listed for investment in GBP on Mintos, we decided to list our loans from Poland also in GBP. We are sure this move will be beneficial for investors on Mintos and our business, as well,” says Māris Kreics, CFO of Mogo Finance.

Mogo loans available on the Mintos marketplace for investment in GBP will be the same as Poland-issued loans already listed on Mintos in PLN. Loans will range from GBP 254 to GBP 7 350, with a repayment deadline of 6 to 48 months. The annual net return to investors will range from 8.5% to 13%. Mogo will offer a buyback guarantee for loans that are delinquent for more than 60 days. The loan originator will retain 5% of each loan placed on the Mintos marketplace as its skin in the game.

Mogo is one of the top loan originators on the Mintos marketplace. The company joined Mintos in March 2015, and has since funded car loans worth EUR 75 million through the marketplace. To date, the average net annual return offered for Mogo loans has been above 12%.

With a total of more than EUR 300 million in loans originated since the company was founded in 2012, Mogo Group is the largest non-bank car loan provider in the region, with operations in Latvia, Lithuania, Estonia, Georgia, Poland, Bulgaria, Romania, Armenia and Moldova.

The aggregate net loan portfolio of Mogo Group is more than EUR 90 million. Mogo Group has demonstrated consistent profitability. Last year, it generated EUR 6 million in net profit, and projects a net profit of  EUR 10 million for 2017. See more information about the performance of Mogo Group in this presentation.

Investing in GBP on Mintos

There are two ways to invest in GBP loans on Mintos: by transferring GBP directly to your investor’s account on Mintos or by converting your currency into GBP on the Mintos marketplace.

If you would like to transfer GBP directly, please use the following bank details:

Bank: TransferWise
Beneficiary Name: Mintos Marketplace
Beneficiary Bank Address: 56 Shoreditch High Street, London, E1 6JJ, UK
Account holder: Mintos Marketplace
Sort Code: 23-14-70
Beneficiary bank account: 11564882
Payment purpose / details: XXXXXX investor (where XXXXXX is your Mintos investor ID number)

Be sure to indicate the exact payment purpose given in the instructions to ensure that funds reach the Mintos account in time; deviations may cause a delay in the transfer and additional fees may be applied.

If you would like to use the currency exchange on Mintos, go to the “Deposit/Withdraw/FX” section in your investor’s account and choose the “Currency Exchange” tab. For EUR to GBP conversions on Mintos, there is a market-level fee of 0.5%.

Use this new opportunity on the Mintos marketplace to achieve your investment goals!

Mogo adds loans from Bulgaria to the Mintos marketplace

2017 08 21 a9d5015da3f32b75cce5d39eb74012f29c54639745108bba41034fbb4429073b

Non-bank car loan provider Mogo continues strengthening its presence on the Mintos marketplace by adding Mogo car loans issued in Bulgaria to its offering to investors. Bulgaria is the sixth Mogo Group market represented on Mintos.

Mogo is one of the top loan originators on the Mintos marketplace. Mogo joined Mintos in March 2015, and has since funded car loans worth EUR 56 million through the marketplace. To date, the average net annual return offered for Mogo loans has been above 12%.

The new loans Mogo will place on the Mintos marketplace will range from EUR 500 to EUR 10 000, with a repayment period of up to 72 months. The average net annual return to investors will range from 8 to 14%.

Loans with and without the buyback guarantee will be offered. Mogo Group has committed via a Letter of Comfort to provide additional intragroup funding to Mogo Bulgaria, if its needed to meet obligations to investors.

To retain its skin in the game, Mogo will keep at least 5% of each loan placed on the Mintos marketplace.

With a total of more than EUR 300 million in loans originated since the company was founded in 2012, Mogo Group is the largest non-bank car loan provider in the region, with operations in Latvia, Lithuania, Estonia, Georgia, Poland, Bulgaria and Romania. Mogo started operations in Bulgaria in March 2017. To date, car loans worth EUR 800 000 have been issued.

The typical Mogo customer is an economically active person with a stable income for whom comfort, mobility and time are important factors in their daily life.

The aggregate net loan portfolio of Mogo Group was EUR 80 million as of June 2017. It has EUR 12 million in equity and EUR 90 million in assets. Mogo Group has demonstrated consistent profitability. Last year, it generated EUR 6 million in net profit and projects to generate about EUR 10 million in net profit in 2017. Mogo Group is audited by PwC.

Mogo Group currently employs more than 200 people, while the number of active customers exceeds 35 000. See more information about the performance of Mogo Group in this presentation.

If you use Auto Invest on the Mintos marketplace and want to invest in Mogo loans issued in Bulgaria, make sure to adjust your Auto Invest settings accordingly.

Mogo offers loans from Romania on the Mintos marketplace

2017 08 14 a047b4fdf20396cb60a83be2cdc6be8d233b5e0ec58cc60faded63284519072c

Non-bank car loan provider Mogo has added car loans issued in Romania to its offering on the Mintos marketplace. Thus, Romania is the the fifth Mogo Group market represented on Mintos, alongside Estonia, Latvia, Lithuania and Poland.

Mogo is one of the top loan originators on the Mintos marketplace. Mogo joined Mintos in March 2015, and has since funded car loans worth EUR 54 million through the marketplace. To date, the average net annual return offered for Mogo loans has been 12.3%.

“We are very happy to provide more diversity to our current and new investors on the Mintos marketplace by adding loans issued in one of our most promising new markets,” says Maris Kreics, CFO of Mogo Finance.

The new loans Mogo will place on the Mintos marketplace will range from EUR 500 to EUR 10 000, with a repayment period of up to 72 months. The average net annual return to investors will range from 8 to 14%.

Loans with and without the buyback guarantee will be offered. Mogo Group has committed via a Letter of Comfort to provide additional intragroup funding to Mogo Romania, if needed to meet obligations to investors.

To retain its skin in the game, Mogo will keep at least 5% of each loan placed on the Mintos marketplace.

With a total of more than EUR 300 million in loans originated since the company was founded in 2012, Mogo Group is the largest non-bank car loan provider in the region, with operations in Latvia, Lithuania, Estonia, Georgia, Poland, Bulgaria and Romania. Mogo started operations in Romania in January 2017. To date, loans worth EUR 1.5 million have been issued.

The typical Mogo customer is an economically active person with a stable income for whom comfort, mobility and time are important factors in their daily life.

The aggregate net loan portfolio of Mogo Group was EUR 80 million as of June 2017. The company has EUR 12 million in equity and EUR 90 million in assets. Mogo Group has demonstrated consistent profitability. Last year, it generated EUR 6 million in net profit.

Mogo Group currently employs more than 200 people, while the number of active customers exceeds 35 000. See more information about the performance of Mogo Group in this presentation.

To obtain exposure to Mogo Romania loans, investors will be able to invest in loans issued by Mintos Finance, a Mintos group company, to Mogo Romania where repayments depend on the borrower’s payments. Each loan issued by Mintos Finance to Mogo Romania will be pegged to a respective loan issued by Mogo Romania to the final borrower. A detailed description of the structure is available in the  Mintos Finance loan contract  and  assignment agreement.

Changes in the Board of AS “mogo”

2017 03 16 3ad40c3fd3b4edad9474006e55c3cabe89d7e624a7dd76df69a5be9fbc66c643

AS “mogo” informs, that effective from 15 March 2017, there are changes in the Board of the Company. The current Chairman of the Board Aleksandrs Čerņagins is being replaced by Edgars Egle. Aleksandrs Čerņagins will remain Member of the Board of AS “mogo”.

About AS “mogo”

AS “mogo” offers classical finance lease and lends against vehicles already owned by clients (a type of service known as leaseback), which is available by filling out an application on the company website, mobile website, over the phone, enquiring with one of 320 affiliated car dealerships, or at one of its client service centers in major cities throughout Latvia. Company has more than 10 thousand active customers. Mogo group companies also operate in Estonia, Lithuania, Georgia, Poland and Romania, with more plans to expand business in other countries.

This news release was distributed by GlobeNewswire, www.globenewswire.com – a Nasdaq company

Mogo to offer loans from Poland on Mintos marketplace

2017 02 13 83c70b8f06c1c78fe08e04e7a180cbbe4bfa8da0e45232eea7450f65eec3add1

Non-bank car loan provider Mogo is expanding its presence on the Mintos marketplace!

Mogo will now offer car loans issued in Poland on the platform. The loan originator will offer investment opportunities in Polish zloty (PLN).

Mintos will host Mogo Poland loans from PLN 2 500 to PLN 35 000, with a repayment deadline of 6 to 48 months. The annual net return to investors will range from 8.5% – 11.5%. Mogo will offer a buyback guarantee for loans that are delinquent for more than 60 days. The loan originator will retain at least 5% of each loan placed on the Mintos marketplace.

The Mintos marketplace already hosts Mogo loans issued in Estonia, Latvia and Lithuania, both with and without buyback guarantee. To date, the average net annual returns for Mogo loans have been around 12%. More than EUR 27 million have already been invested in Mogo loans on the Mintos platform. The most active investors are from Estonia, Latvia, and Germany.

The typical Mogo customer is an economically active person with a stable income for whom comfort, mobility and time are important factors in their daily life.

“We are very pleased with our cooperation with Mintos, which has allowed us to fund more than EUR 27 million in loans in the Baltic countries. Mintos investors have valued the diversified investment opportunities that Mogo offers – variety in loan terms, LTV, and returns, as well as loans with and without buyback guarantee. Mogo is able to successfully cover the needs of Mintos investors,” says Mogo Finance CFO Maris Kreics.

Over the last several years, Mogo has experienced rapid growth. With a total of EUR 150 million in loans originated since the company was founded in 2012, Mogo is the largest non-bank car loan provider in the region, with operations in Estonia, Georgia, Latvia, Lithuania, Poland and Romania. Mogo Group currently employs more than 200 people, while the number of active customers exceeds 33 000.

Mogo financial calendar in 2017

2016 12 13 3ad40c3fd3b4edad9474006e55c3cabe89d7e624a7dd76df69a5be9fbc66c643

Audited Annual Report for 2016 will be published on 28 February, 2017.

Unaudited interim condensed financial information for the 3 month period ended 31 March 2017 will be published on 28 April, 2017.

Audited interim condensed financial information for the 6 month period ended 30 June 2017 will be published on 31 August, 2017.

Unaudited interim condensed financial information for the 9 month period ended 30 September 2017 will be published on 31 October, 2017.

This news release was distributed by GlobeNewswire, www.globenewswire.com – a Nasdaq company.

Mintos marketplace – loan originator’s perspective

2016 11 02 c956bfe23429e0329ab5595a356c4cd338c823cc162121b657ccd1a4d484c31c

Quite a few of the most active Mintos investors have shown interest in MOGO’s business, asking questions on Facebook groups and approaching me directly. This blog post aims to answer the most frequently asked questions.

Please note that even though the MOGO business model is similar in all countries in which we operate, there are also many differences, mainly due to regulatory requirements. Because of this, the information provided below does not necessarily apply to other countries in which MOGO operates, or to other loan originators.

Background

MOGO Estonia offers two main products to its clients – title loans (also known as leaseback) and vehicle financing (similar to leasing, we finance the purchase of a vehicle). In both cases, the vehicle secures the loan.

About a third of the loans we issue are title loans, while the rest are vehicle financing. We began operations in Estonia in 2013; since then we’ve served almost 6,000 clients and have reached a gross portfolio exceeding EUR 12 million. Our average loan amount is about EUR 3,000, and the average age of the collateral is between 10 and 15 years. We charge interest rates ranging from 30% to 60% per annum. Less than 10% of our portfolio consists of defaulted loans.

Do you invest on the Mintos platform yourself?

Yes. I was among the first investors on the platform, back when Latvian mortgage loans were the only investment opportunities available. So my investment career on Mintos precedes the cooperation between MOGO and Mintos.  By now the investments I’ve made on Mintos make up the largest part of my personal P2P portfolio. My Auto Invest is configured to only pick up buyback-guarantee loans, so most of my money on Mintos has been invested in MOGO loans.

How is your business regulated?

MOGO Estonia is a licensed creditor under the Creditors and Intermediaries Act. Aside from the rigorous conditions set for us by Mintos, we are supervised by the Estonian Financial Supervisory Authority. Our auditor is PwC, and we have outsourced our internal audit function to Grant Thornton Baltic.

What does the loan issuance process look like?

After an application is submitted on our website, we gather information both on the client and the vehicle from various databases (including population, vehicle, pension and credit issues registries). Based on this information we calculate a credit score for the client. Before we transfer the loan amount, MOGO Estonia is registered as the owner of the vehicle while the client remains the “responsible user” in the registration document of the vehicle.

How do you assess the value of the collateral?

Initially, we used vehicle sales portals to evaluate the market value of a vehicle; now this process is largely automated and requires little input from our team. The algorithm creates a sample of similar vehicles on the market (make, model, production year, engine type and size, etc.) and calculates the median price, which is used as a basis for the final assessment value.

What happens if the loan defaults?

First, MOGO always attempts to avoid defaults. Our main income consists of interest payments; the share of penalties and service fees is small. Our “soft collection” procedures are highly automated, allowing our debt collection team to focus on finding individual solutions to payment issues instead of performing standard repetitive tasks such as sending emails, text messages, and making phone calls.

If we are not able to avoid a default, our repossession managers attempt to secure the vehicle. At this point, the client can still renew the contract if the outstanding debt is repaid. Repossessed vehicles are sold on the MOGO car lot. If the vehicle sale proceeds do not cover the outstanding debt amount, we attempt to reach an agreement with the client (settlement agreement, buyout, etc.). If the client is uncooperative, we will sell the claim to a collection company, which can pay anything between 10% and 50% of the outstanding principal amount. The rest of the claim is then written off.

In the past we’ve also used court proceedings and bailiffs to recover the funds owed to us, but these processes have proved too slow and too costly. Now we prefer to focus on our core competence of issuing and servicing loans.

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Eerik Oja, Country Manager of MOGO Estonia

Why do so many loans get bought back?

Our average loan term is around four years, so there is ample time for conditions to change. As a flexible credit company, we allow clients to change contract terms. As noted above, we strive to avoid defaults, and so we may agree on a new payment schedule with the client. Moreover, many loans get repaid before the original maturity date, and sometimes well-paying clients ask for an additional loan (principal increase). Changes to the contract terms can be as small as changing the payment date for a more suitable day of the month (e.g. on the day the client receives his or her salary). In all of these cases, a buyback-guarantee loan is repurchased from the Mintos marketplace (and frequently relisted the next day with new contract terms).

There have also been questions about buyback reasons, in particular the designation of a “not specified” reason. These have been caused by data exchange issues between the MOGO and Mintos internal systems, as both are being updated constantly. The issue has been found and resolved, so in the future you should not see “not specified” as a buyback reason any more.

Why do you use Mintos instead of other financing types?

Mintos is not the only financing source for us. The MOGO Group also uses bank credit lines, loans, bonds, etc. In 2015 we secured a EUR 23.3 million financing round from Mezzanine Management, which is backed by EBRD and EIF, among other institutional investors.

That being said, we like the flexibility that the Mintos platform offers, which enables us to match loan issuance and financing cash flows. In case of bond financing, for example, we would receive the proceeds in one day and would have to pay interest on money that is standing in our bank account. With Mintos we don’t have this cash drag issue.

Why does the interest rate/LTV/term of the loans offered on the platform change?

It’s important to note that loan parameters are set by MOGO, whereas the role of Mintos is to provide the platform that enables different loan originators to compete for investors’ money – in that sense Mintos has the characteristics of a stock market rather than a typical P2P loan service.

As a for-profit business, MOGO is interested in securing financing at the lowest possible effective rate, which is why we test investor demand by changing certain parameters (LTV, interest rate, loan term, buyback vs. no buyback, etc.). When we first started our cooperation, we hand picked the loans that we believed would get the first investors on board so we could prove that we are able to provide attractive risk-adjusted returns. These loans had a long payment history, low LTV and offered a comparatively high interest rate. Over time, demand for our loans increased, and now our loans listed on Mintos are quite similar to our general portfolio metrics – although, of course, we have not listed our whole portfolio on the platform.

Why are MOGO interest rates lower than other buyback loans?

It is true that MOGO buyback loans tend to offer lower interest rates than unsecured payday loans. This might sound trivial to many, but it is important to stress that all MOGO loans are secured by vehicles, so in case of a default, the claim against the client can be covered by selling the underlying asset. We believe that MOGO loans offer the best risk-adjusted investment opportunities on the Mintos platform, but of course investors are free to “vote with their money” and invest in the loans they deem to be the most attractive.

To meet different investor preferences, MOGO offers both buyback and non-buyback loans, with the latter currently offering the highest interest rates available on the Mintos marketplace.

We believe the cooperation with Mintos is an integral part of the continuing success of MOGO. We strive to use innovative solutions in all areas of our business, and financing is no exception. We believe that Mintos is leading a revolution and we’re happy to be a part of it.

- By Eerik Oja, Country Manager of MOGO Estonia (eerik@mogo.ee) | October 2016

Mogo launches loans without buyback guarantee

2016 08 11 d7fc4b71eddb94d5492bb1dc5929943f6ad74d6c7f909820277e48ceb86d336f

We are happy to announce that Mogo loans without the buyback guarantee are now available on the Mintos marketplace. We are excited to bring to market yet another loan product that will allow investors to further diversify risk. With a total of EUR 130 million in loans originated since the company was founded in 2012, Mogo is the largest non-bank car loan provider in the region, with operations in Estonia, Georgia, Latvia, Lithuania, and Poland.

Loans without the buyback guarantee is an opportunity for investors to earn potentially higher net returns. Moreover, by investing in loans without the buyback guarantee, investors will have full exposure to the underlying asset class of loans and will not have to rely on the financial strength of Mogo to provide the buyback guarantee.

Mogo will start with a limited number of loans originated in Latvia to test investor appetite. Given sufficient demand, the loan supply will be increased over time. Loans will be priced by Mogo according to its credit scoring model, which  has been well refined in accordance with Mogo’s extensive experience in originating loans and debt recovery.

In our blog we have compiled answers to some questions investors might have.

Why invest in loans without the buyback guarantee?

Investing in loans without the buyback guarantee can potentially yield higher net returns. In general, loans without the buyback guarantee come with a higher interest rate than loans with the buyback guarantee — the difference is the estimated annualized bad debt rate. Furthermore, loans without the buyback guarantee provide an opportunity to get true exposure to the underlying loans as investors don’t have to rely on the buyback guarantee provided by the loan originator.

What net return can I expect?

The net return is a function of earned interest and bad debt. For a well-diversified portfolio, the net return can be calculated as gross interest rate less annualized bad debt rate.

What are the estimated bad debt rates for Mogo loans?

Bad debt is debt that is not collectible. A loan becomes “bad debt” when there is no longer a reasonable expectation of further payments. Remaining principal balance of the loans that become bad debt will be deducted from your account balance.

The average bad debt rate across the Mogo loan portfolio has historically been around 5%. However, the bad debt rate of new loan originations is expected to average around 2%, due to improved credit scoring and debt collection.

The estimated bad debt rates are provided according to Mogo’s credit scoring model, based on past performance. Estimated bad debt rates are not a guarantee of the actual bad debt you will experience. Investors should spread their investments across many loans to reduce the impact of any single default.

Estimated bad debt rates are annualized so they can be used by investors to help calculate what their expected annual return will be.  Diversified investors can calculate their expected annual return by simply deducting the bad debt rate from gross interest rate.

What happens if a loan is late?

Late payments are a natural component of investing in loans. If the borrower misses (or only partially pays) a monthly instalment, Mogo makes significant efforts to contact the borrower, collect outstanding payments, and bring the loan back to current status. Mogo has a robust internal debt collection team and works with several external collection agencies where necessary.

Once loans become late, Mogo attempts to contact borrowers via email, SMS, phone, and letter to collect any past due payments. Depending on the circumstances, Mogo works with the borrowers to arrange for payment to be made immediately, structure a new payment plan, or take other appropriate action, all in an attempt to prevent the loan status from deteriorating further.

If the borrower becomes 35 days in arrears, or otherwise if Mogo believes there is a serious risk that the borrower will not be able to fully repay the loan, the loan may be placed into “Default”.  This means that the loan will be terminated and the outstanding balance of the loan will become immediately due and payable.

Mogo will act with due care and in a fair and proportionate manner to achieve maximum recovery for all affected investors. In doing so, Mogo will, among other things, aim to renew the loan, repossess and realize collateral, sell the debt to a third party, or pursue further legal action. Mogo will pay to investors, in their proportionate share, any funds successfully recovered less costs incurred.

When a loan is placed in “Default”, the loan will be re-assigned to Mogo. Assignment enables Mogo to “step into the shoes” of the investors, which makes it easier for Mogo to negotiate with the borrower and to take steps to recover the loan.

Where can I see ongoing collection activities on late loans?

As an investor, you are regularly updated with any servicing and collection activity related to your loans via the Debt Collection page in your account. To see the Debt Collection page, go to My Investments and click on the ID of a particular loan.

Can I sell a loan that is in “Default” status on the Secondary Market?

Yes, you can place the loan that is in “Default” status on the Secondary Market. However, please keep in mind that the demand for such loans might be limited.

What happens when a loan is charged off to “Bad Debt”?

A loan becomes “Bad Debt” when there is no longer a reasonable expectation of further payments. A loan is charged off to bad debt typically when a loan is 140 days past due.

Mogo may sell charged off loans to a third party. In the event that a charged off loan is sold to a third party or funds are recovered on a previously charged off loan, investors will receive a pro rata share of the sales proceeds or recovery amount, respectively, less any fees. In general, recoveries on previously charged off loans are infrequent.

What is the difference between a loan that is in “Default” and a loan that is “Bad Debt”?

Loans that are in “Default” are loans for which borrowers have failed to make payments for an extended period of time. In general, a loan enters default status when it is 30+ days past due.

A loan becomes “Bad Debt” when there is no longer a reasonable expectation of further payments. A loan is charged off to bad debt typically when a loan is 140 days past due (i.e. 110 days after the default status is reached) and there is no reasonable expectation of sufficient payment to prevent the charge off. In certain circumstances, loans may be charged off at an earlier or later date.

A loan that is in “Default” will still appear in your loans, while a loan that is “Bad Debt” will appear as charged off, and the remaining principal balance of the loan will be deducted from your account balance.

Take the opportunity and invest in Mogo loans without the buyback guarantee.

Interview with Mogo Finance Group Chief Financial Officer Maris Kreics

2016 02 19 maris kreics 5de54336615e1e59d4349b83d80c88b9ee5653083066260a37805edd48533a49 “Everyone should play to their strengths. Mogo’s expertise is issuing loans to customers. We have developed advanced process for assessing clients’ creditworthiness, and we are able to evaluate collateral at a very high accuracy in a timely manner.”

The Mintos team has developed a peer-to-peer lending platform covering a wide range of investors around the world,” says Mogo Finance CFO Maris Kreics commenting Mogo’s collaboration with Mintos. Kreics also praises the high investor interest in the Company’s loans. To date, more than 5 million euros have been invested into Mogo loans. The most active investors are from Latvia, Germany and Great Britain.

Compared to other loan companies that have joined the Mintos platform, what, in your opinion, are the three main advantages of Mogo?

One of the main advantages of Mogo is the low risk, but high returns of our loans. To date, the average net annual returns for Mogo loans have been around 11%. Why low risk? First, the loans are guaranteed by vehicle collateral – the average Mogo loan is 60% (LTV) of the vehicle’s value. Second, we offer a buyback guarantee to our investors. Third, a large proportion of the loans Mogo places on the platform have previously had several payments. This means risk is far lower because clients have already demonstrated excellent repayment discipline.

In my opinion, the investment term for Mogo loans is also optimal. Money is constantly earning interest, so there is no need to re-invest it each month. Loans with similar returns, but with a term of one month, carry the risk of not having the immediate opportunity to be re-invested; as a result, these may remain in a virtual account for a time without earning any interest.

Mogo was established in 2012. How would you characterize Company’s performance during this time?

Over these years, Mogo has experienced a rapid growth. We have become a stable market leader in our services sector in Latvia, Lithuania, Estonia and Georgia.

Company’s growth is also supported by Mogo Group’s key performance indicators. At the end of last year, the gross loan portfolio reached 64 million euros. Mogo has more than 30 branches in the countries where the Company is operating. Similarly, we have co-operation agreements with more than 1,000 car dealers and brokers. Mogo Group currently employs more than 230 people, while the number of customers exceeds 29,000.

In your opinion, what has been the key to Mogo success? What are the future development plans of the Company?

I think Mogo accomplishments are based on a clear understanding of customer needs. It is the customer who is the most important component of our activity model. The loan, collateral and other conditions follow after we have evaluated each customer’s individual needs and opportunities.

With regard to Company’s development plans, we can see customers are more frequently demanding solutions that provide an even greater increase in mobile services. Because of this, we are investing a lot of time and energy to make our services truly convenient and accessible to customers. Of course, we are also evaluating opportunities to expand Company’s activity into other countries in Central and Eastern Europe.

How would you characterize the financial performance of Mogo?

Having been in operation for only slightly more than three years, Mogo Group has demonstrated impressive financial results. Over these years, we have issued loans in excess of 100 million euros. Provisionally, Mogo Group’s EBITDA for 2015 will reach approximately 5.3 million euros.

Unfortunately, I cannot analyze last year’s financial data further because our subsidiary in Latvia has issued bonds in the amount of 20 million euros, which requires us to provide this information to NASDAQ Riga stock exchange first.

To expand our activity, we have purposefully attracted funding from other financial sources. In May 2015, Mogo Group signed an agreement with one of the leading European mezzanine capital solution providers, Mezzanine Management, for a 23.3 million euro loan, part of which has already been used by the Company. We are pleased by the confidence Mezzanine Management has shown in us, particularly because the fund advised by Mezzanine Management is backed by reputable institutional investors, including the European Bank for Reconstruction and Development and the European Investment Fund. This is a proof that our work is headed in the right direction.

Why has Mogo Finance joined the Mintos platform? Why didn’t you create your own platform, as other loan companies do?

Everyone should play to their strengths. Mogo’s expertise is issuing loans to customers. We have developed advanced process for assessing clients’ creditworthiness, and we are able to evaluate collateral at a very high accuracy in a timely manner. We have obtained significant experience in loan management over these years, and we have made considerable investments to improve various internal processes, including the evaluation of collateral quality.

As such, we decided to delegate the attraction of investors, who fund our loans through the marketplace, to the professionals, who have a wide range of knowledge and an opportunity to reach a large number of investors around the world. Creating our own platform would have also been very time-consuming and expensive.

Currently Mogo loans issued in Lithuania and Estonia are available for investors on the platform. Do you plan to add loans issued in other countries to the platform?

Yes, we are currently evaluating the opportunity to add to the platform loans issued in Latvia and Georgia.

Who is your typical customer? How do you evaluate the payment capabilities of each customer?

The typical Mogo customer is an economically active person with a stable income, for whom comfort, mobility and time are important factors of a daily life. In my opinion, this is exactly why Mogo — with fast and convenient service — is the obvious first choice of our customers.

When evaluating the issue of loans, we use our expertise, the latest technology and all available market-specific data. Following a careful analysis, we come to a decision with regard to issuing a loan to a specific customer.

What is the loan repayment discipline? On average, what is the proportion of delayed loans?

Our data shows that about 7 – 9% of customers are late in their regular payment up to 15 days. The statistics, of course, differ for each country. When we initiate the first debt collection activities, the number of delayed payments after 15 days decreases to approximately 3 – 5%. We terminate contracts with delayed payments up to 35 days. We typically renew around 30% of terminated contracts. In case the contract is not renewed, collateral is repossessed and sold. This process lasts approximately 10 weeks, on average.

Why did you implement the buyback guarantee?

With regards to the buyback guarantee, I would like to mention that Mogo’s significant loan-issuing experience allows us to be reasonably precise when estimating the amount of defaults within a portfolio. Knowing this amount, we can assess the amount of the buyback guarantee and repurchase delayed loans to ensure that investors do not wait for a loan recovery.

In Mogo’s case, the rate of interest offered to investors follows the expected rate of default, adding back in the buyback guarantee; only the investment return differs, depending on the selected loan collateral value and term. This is especially important to those who invest in only a few loans, where each delayed loan has a significant influence on the total return of investments. With the buyback guarantee, we ensure that investors have less volatile returns and a more understandable product.

Do you plan on increasing the amount of loans placed on the platform?

Yes, we plan on gradually increasing the amount of loans placed on the platform, thus fueling the further growth and development of the Mogo Group.

I must say, we are altogether quite satisfied with current indicators – Mogo loans placed on the platform already have investments totaling more than 5 million euros. Our loans have been most actively financed by investors from Latvia, who have invested almost 1 million euros; they are followed by investors from Germany, where the total amount exceeds 760 thousand euros. In turn, the third largest investment in Mogo loans come from Great Britain, totaling just over 680 thousand euros.

Mogo Finance attracts EUR 23.3 million mezzanine growth capital from Mezzanine Management

Mezzanine Management has provided EUR 23.3 million of mezzanine finance to support the growth of Mogo Finance (Mogo), a non-bank car financing provider operating in the Baltics and Georgia.

The deal was funded through Accession Mezzanine Capital III, Mezzanine Management’s third investment vehicle. The fund is backed by reputable institutional investors, including European Bank for Reconstruction and Development and European Investment Fund.

The funds in this deal are earmarked for developing Mogo’s operations in other countries within the Central and Eastern European region. Mogo is currently the market leader in the Baltics, with a loan portfolio in excess of EUR 38 million comprising 20 000 cars and employing more than 200 people. The firm presently has operations in Latvia, Lithuania, Estonia and Georgia and plans to work with Mezzanine Management to expand the group into other countries. The goal is to make Mogo the leading non-bank car financing firm in the wider Central and Eastern European region over the next few years.

“We look forward to working with Accession Mezzanine Capital III to continue to grow our business. The investment of such a global and reputable investment fund is a strong vote of confidence for Mogo, its shareholders, employees and current strategy. Our new partnership lays down solid foundations for further expansion of the group, and reinforces our belief in our business strategy,” said Jēkabs Endziņš, board member of Mogo.

Franz Hörhager, Founder Partner of Mezzanine Management, commented: “We constantly map the market and have seen the Baltics become more attractive and thus active in recent years. The development of the economies there has made the region more interesting for us, evidenced by our signing two deals there in four months. The latest, in Mogo, is in a sector we know well, having backed Masterlease in Poland previously. We believe our experience in this segment combined with the strength of Mogo’s management team means we can work well together in achieving the business’s growth ambitions.”

Mezzanine Management was advised by DELOITTE as well as law firms NORTON ROSE FULBRIGHT, TARK GRUNTE SUTKIENE, ARENDT & MEDERNACH and DLA PIPER.

Mogo was advised by PORTA FINANCE and law firm EVERSHEDS BITĀNS.

Mezzanine Management is an exclusive advisor to the Accession Mezzanine Capital group of funds, whose total commitments exceeded half a billion euros. The company has been operating in Central and Eastern Europe since 2001 through its offices in Vienna, Warsaw, Bucharest, Budapest and Kiev. The funds’ investment portfolio is diverse and includes over 40 transactions over 10 countries in Central and Eastern Europe. The fund is backed by reputable institutional investors, including European Bank for Reconstruction and Development and European Investment Fund.
www.mezzmanagement.com

Mogo Finance is one of the fastest-growing non-bank car financing companies in the Baltics and Georgia. It offers its clients standard financial leasing as well as loans secured with a vehicle owned by the client. The company has 28 branches in 26 cities in four countries. The group co-operates with more than 500 car dealerships and employs more than 200 people.

Mogo’s subsidiary in Latvia is 100% owned by the parent company Mogo Finance S.A. In 2014, JSC Mogo issued 20,000 bonds with the total value of EUR 20 million on the debt securities’ list of the Baltic NASDAQ exchange. The deal concluded with Mezzanine Management in June 2015 was aimed to attract additional financing for the development of the company at the group level.

AS "mogo" audited annual report for 2014

AS "mogo" concludes year 2014 with a net profit of 0.54 million euro

2014 was a period of very rapid growth for the Company. Total assets of the Company grew up to 28 million euro, turnover reached 5.8 million euro, EBITDA 2.4 million euro, and net profit of the Company reached 0.54 million euro.

In September 2014 the Company increased its share capital to 5 million euro to strengthen its financial and long-term value. At the end of December 2014 gross value of the lease portfolio reached 22.5 million euro (204% growth in comparison with year 2013).

On 17 March 2014 the Company registered a bond emission for a total amount of 20 million euro at Latvian Central Depository in order to raise additional capital, and on 11 November 2014 the Company included these bonds in Nasdaq Baltic Stock Exchange Debt Security listing, where they are available for public trade. By 8 April 2015 the Company has issued the maximum number of securities 20 000 at the nominal value EUR 1 000 for the total amount of EUR 20 000 000.

AS "mogo" unaudited financial results for the ten month period ended 31 October 2014

AS "mogo" (the Company) continues to see rapid growth of business in Latvia. The Company’s interest and similar income for the ten-month period ending on 31 October 2014 totaled EUR 4,602,750, increasing by 154% compared to the same period last year. The Company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) reached EUR 2,201,301 and net profit for the period was EUR 605,497.

AS "mogo" net lease portfolio reached EUR 20,096,836, increasing by 180% in comparison to 2013 year-end results. Customer receivables which were overdue more than 30 days constituted 8% of the net lease portfolio.

The Company’s issued share capital was increased to EUR 5,000,000 in September 2014.

AS "mogo" attracts EUR 19 million in investments by issuing notes

01 mogo attracts investments by issuing notes f1a23dfcf1635078f16fd9632ce4b78ff0af70368c0d2aa586c1b5e4888f8d63
Marcis Grinis, Member of the Board at AS mogo
Daiga Auzina-Melalksne, Head of Exchange Services at Nasdaq OMX Baltic Market

Provider of vehicle finance lease and leaseback services AS "mogo" has issued notes to attract EUR 19 million as financing for its leasing portfolio.

A total of 19,062 notes with an initial nominal value of EUR 1,000 were issued. The annual coupon rate is 10% over a 7-year term with gradual repayment of the principal during the final two years. In accordance with the issue prospectus, AS "mogo" may issue another 938 notes (total nominal value of 938,000 EUR) by 31 December 2015. The notes were assigned securities identification number (ISIN) LV0000801363 and the issue prospectus was registered by the FCMC on 23 October 2014.

AS "mogo" notes are on the Nasdaq OMX Baltic Bond List, where they will be available for free market trading.

„We are happy about AS "mogo" decision to attract financing for their future development in the capital market by issuing bonds,” said Daiga Auziņa-Melalksne, Head of Exchange Services at Nasdaq Baltic Market. „We are also excited to see development of the Baltic fixed income market as these corporate bonds will provide broader investment opportunities for retail and institutional investors in the Baltic region.”

Company management cite refinancing of current loans under more attractive conditions as one of the primary goals of this issue, along with improvement of cash flow, liquidity, and attraction of additional capital for the issuer’s leasing portfolio.

‘Although the company was only founded in 2012, AS "mogo" has already established itself as a market leader in finance lease and leaseback services in Latvia. With its clear-cut offering, quick procedure for evaluating lease applications, extensive cooperation with vehicle dealerships, and a targeted marketing campaigns, the company has been able to offer clients loans with attractive provisions. As a result, the number and total volume of lease agreements concluded has increased dramatically within the past year,’ explained Jekabs Endzins, AS "mogo" Chairman of the Board.

‘AS "mogo" is one of the few financial businesses in Latvia to offer finance lease for purchase of used vehicles without restrictions on vehicle age and with loan terms of up to 6 years. The company’s services have been selected by more than 10 thousand clients in Latvia alone. Today, mogo group companies also operate in Estonia, Lithuania, and Georgia, with plans to expand business to other countries as well,’ Endzins added.

The issue of notes was organised by Baltikums Bank AS.

AS "mogo" is a company that offers classical finance lease and lends against vehicles already owned by clients (a type of service known as leaseback), which is available by filling out an application on the company website, mobile website, over the phone, enquiring with one of more than 200 affiliated car dealerships, or at one of its client service centres in major cities throughout Latvia.

Based on audited financial statements for the first half of 2014, the turnover of AS "mogo" reached EUR 2.2 million, with a corresponding profit of 176 thousand euros.