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Iute bond exchange offer subscription until May 7 at 14:00 CEST (15:00 EEST)

Offer details

As a bondholder of Iute’s 2021/2026 bonds, you have the opportunity to:

Exchange your existing bonds for new 2025/2030 bonds

  • Exchange ratio 1:1 – for each 2021/2026 bond, you will receive one new 2025/2030 bond
  • Minimum annual interest rate of 11.0%

  • Maturity up to 5 years

  • Cash premium of 2.50 euros per exchanged bond

  • Accrued interest in cash for period from April 6 2025 until settlement (no later than 15 June 2025)

Participate in cash offer for existing bonds

  • Receive a cash payment of 99.00 euros per 2021/2026 bond

  • Accrued interest in cash for period from April 6 2025 until settlement (no later than 15 June 2025)

Bonds that will not be exchanged or tendered will be redeemed at maturity in October 2026.

This is a conditional offer, meaning that it will proceed only if the total amount of 2021/2026 bonds exchanged or tendered reaches at least 75 million euros. The total issue size of the new 2025/2030 bonds will be at least 125 million euros.

The conditional offer will end on 7 May 2025 at 14:00 CEST (15:00 EEST). The results of the conditional exchange and cash offer will be announced on or around 9 May.

why invest in Iute

How to perform the exchange transaction?

Please note that the corporate event may become visible in the investor’s custodian bank later and close earlier than the official start and end dates of the offer. As custodian banks may apply an earlier internal deadline for processing the transaction, we recommend completing the bond exchange in advance.

To participate in the offer, you must submit a subscription instruction via your custodian bank. The relevant information can be found on the Internet banking under the Corporate Actions section.

Estonia
Latvia
Lithuania
why invest in Iute
why invest in Iute

Why invest in Iute bonds?

A fintech company offering a wide range of financial services across Southeast Europe
  • 11% annual interest, paid semi-annually
  • Bonds are tradable on the stock exchange
  • Proven and stable business model
  • Experienced management team
  • Bonds are secured with company assets
  • Fitch rating for issuer and bonds
  • Strong record of meeting obligations to investors
why invest in Iute

About Iute Group

Iute Group, established in 2008 in Estonia, is a leading financial technology company specializing in consumer finance, payment services, banking, and insurance products. The Group, with its headquarter in Tallinn, serves customers in Albania, Bulgaria, North Macedonia, and Moldova. 

Iute finances its loan portfolios with equity, funding from banks and P2P platforms, as well as secured bonds listed on the Frankfurt Stock Exchange and Nasdaq Baltic Main List.

Our mission is to create the greatest experience in personal finance, by combining fintech with the warmth of the human touch to help our customers to become financially and digitally stronger.

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Bond information

Bond Name

IuteCredit Finance S.à r.l. bond 2021/2026

Listing

Nasdaq Tallinn börs, Frankfurdi börs

ISIN

XS2378483494

Denomination

EUR 100

Issue Volume

EUR 125,000,000

Interest Coupon

11%

Interest Payments

Semi-annually: April 6, October 6

Prospectus

August 30, 2021 | March 1, 2023 | May 26, 2023

Frequently Asked Questions

The offer is open to all holders of Iute’s EUR 2021/2026 bonds.

The offer is conditional, meaning it will only proceed if at least EUR 75 million of the EUR 2021/2026 bonds are exchanged or tendered.

To participate, you need to contact your custodian bank where your Iute bonds are held. Detailed instructions are available in the Corporate Actions section of your online banking platform. Some banks may apply earlier internal deadlines for processing, so we recommend submitting your instruction before 6 May. After submitting an instruction to your custodian bank to exchange or tender 2021/2026 bonds, trading with those will be restricted until the settlement is completed.

Under the exchange offer, investors can exchange their EUR 2021/2026 bonds for new EUR 2025/2030 bonds at a 1:1 ratio. The new bonds carry a minimum annual interest rate of 11.0% and have a maturity up to 5 years. Investors who choose to exchange will also receive a cash premium of EUR 2.50 per bond, as well as accrued interest from 6 April 2025 until settlement, to be paid in cash. Settlement is expected to occur no later than 15 June 2025.

Under the tender offer, bondholders will receive EUR 99.00 in cash per EUR 2021/2026 bond, plus accrued interest from 6 April 2025 until settlement, to be paid in cash. Settlement will take place no later than 15 June 2025.

Investors who participate in the exchange offer will receive a one-time exchange premium of 2.5% of the nominal value of the exchanged bond, which amounts to €2.50 for each bond with a nominal value of €100. In addition, interest will be paid for the period from 6 April 2025 (the last coupon payment date of Iute’s 2021/2026 bonds) until the settlement date of the exchange offer. The interest accrued during this period will be transferred to the investors’ payment accounts.

The annual coupon interest rate of the new 2025/2030 bonds is at least 11%. While the final interest rate may be higher, investors should consider that it may remain at the 11% level.

This offer is intended only for Iute 2021/2026 bondholders. If the conditional exchange and tender offer is successful, Iute plans to issue new 2025/2030 bonds with an annual interest rate of at least 11%. Investors who do not currently hold Iute bonds but wish to participate in the new bond offering are encouraged to subscribe to our investor newsletter to be informed as soon as the public offer opens.

A bond is a security that allows an investor to lend money to an issuer under specific conditions. In return, the investor receives regular interest payments and, on the maturity date, gets back the initial investment.

The nominal price of an Iute bond is 100 euros. The nominal value is the value assigned to a security at issuance.

The nominal value is the value assigned to a security at issuance

Income from bonds can be earned through interest payments and/or price changes in the bond’s value.

A senior secured bond means that it is not prioritized over other obligations of the company but is backed by specific assets.

The international rating agency Fitch Ratings has assigned Iute Group bonds a B- rating with a stable outlook.

Iute bonds are listed on Nasdaq Tallinn and Frankfurt stock exchanges, allowing them to be bought and sold on the secondary market.

According to the Prospectus terms, tax is not deducted from Iute’s bond interest payments

The process for legal entities is similar to individuals, but a legal entity must have a LEI code to hold securities.

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Need help?

If you have any questions, feel free to contact us!

Iute Group
Maakri 19/1, 10145 Tallinn
Email: investor@iute.com
Phone: +372 622 9177

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Investing in securities carries risks. Past performance does not guarantee future results. Before making an investment decision, please read the Conditional Exchange and Cash Offer, available at www.iute.com.