Iute EUR 2021/2026 bondholders with great consent to amend terms and conditions

Bondholders’ Meeting secures greater financial flexibility for growth

Tallinn, Estonia, 4 August 2023. Iute Group, a leading European personal finance group, through its fully owned subsidiary IuteCredit Finance S.à r.l., has received great consent from bondholders to amend the terms and conditions of its EUR 2021/2026 bonds (ISIN: XS2378483494). At yesterday’s bondholders meeting, all proposed amendments were resolved. The proposals included lowering the interest coverage ratio in relation to the incurrence test (Proposal 1), increasing the flexibility of the permitted debt baskets (Proposal 2), and facilitating the implementation of employee participation programs (Proposal 3). The amendment to the terms and conditions accounts for the changes in the Group’s structure following the acquisition of Energbank, as well as the continued and significant growth and development of Iute Group’s business.

With the resulting participation of 56% of outstanding bonds, the quorum threshold of 50% was duly satisfied. The participants voted with 95% almost unanimously in favor of each of the resolutions, thereby also duly meeting the majority thresholds.

Tarmo Sild, Group CEO: “We thank the bondholders for their trust in Iute. Iute grows and develops thanks to joint efforts, in which the people who invest their money in Iute play a major role. Money has to generate money. The change in terms and conditions allows us to optimize the Group’s capital structure through prudent leverage and capital allocation in order to continue our growth with greater flexibility.”

The terms and conditions of the EUR 2022/2026 bonds have been formally amended. The full documentation including the results of the voting is available at: https://iute.com/investor/#bonds.

Bondholders who have voted in favor of the amendment will receive an amendment fee of 0.25% of the nominal amount of the bonds within 14 days.

Aalto Capital (Germany) acts as Financial Advisor to the Group.