Strong demand from existing investors and new subscriptions

Tallinn, Estonia, 30 May 2025. IuteCredit Finance S.à r.l., a subsidiary of Iute Group AS, a leading European financial group, today successfully issued new Senior Secured EUR 2025/2030 Bonds with an interest rate of 12% for a total volume of EUR 140 million. The partial refinancing of around EUR 78 million of the EUR 2021/2026 Bonds has thus been completed ahead of schedule.

With lively demand from existing investors for the exchange of their EUR 2021/2026 Bonds amounting to around EUR 52.5 million, new subscriptions totaled around EUR 87.5 million. Institutional investors from Europe thereby signaled broad support for the issue of the new Senior Secured EUR 2025/2030 Bonds. Private investors subscribed to bonds with a volume of around EUR 11 million.

Tarmo Sild, CEO of Iute Group AS: “Firstly, we would like to thank our existing investors for their continuous support, which resulted in the successful exchange of EUR 2021/2026 Bonds for EUR 2025/2030 Bonds worth around EUR 52.5 million. Secondly, we would like to thank and welcome our new investors from Europa and the United States, both institutional and retail, for contributing to Iute Group’s growth on attractive terms. The increase in the EUR 2025/2030 Bonds coupon to 12% reflects the new reality since 2021: Euribor has risen by more than 2 percentage points and yields on US Treasury bills have gained more than 3 percentage points. We at Iute are therefore grateful that the cost of funding has decreased relative to the overall price of capital and that investors’ trust remains strong. Iute Group now has stabile capital structure until 2030, thanks to the hard work of the entire Iute team across all Iute countries. We intend to continue issuing bonds in line with our customers’ growth requirements in the future. Meanwhile, we are continuing to build our ecosystem, loan portfolio and other value streams, supported by strong profitability.”

Settlement is scheduled for or around 6 June 2025. The new EUR 2025/2030 Bonds are expected to be admitted to trading on the Regulated Market of the Frankfurt Stock Exchange (General Standard) and the Baltic Regulated Market of the Nasdaq Tallinn Stock Exchange on or around 9 June 2025.

Holders of the EUR 2021/2026 Bonds who have elected to exchange their Bonds for new Senior Secured EUR 2025/2030 Bonds will receive a cash premium of EUR 2.50 per Bond exchanged, plus accrued and unpaid interest in cash from 6 April 2025 until the Settlement Date. Bondholders who have elected to tender their Bonds for cash consideration will receive EUR 99.00 per Bond, plus accrued and unpaid accrued interest in cash from 6 April 2025 until the Cash Settlement Date. Settlement of the Bonds tendered for cash consideration will take place on or around 16 June 2025.

Oppenheimer & Co. Inc (New York / London) and AS LHV Pank (Tallinn) are acting as Joint Lead Managers and Joint Bookrunners as well as Signet Bank AS (Riga) as Co-Manager and Bankhaus Scheich Wertpapierspezialist AG (Frankfurt/Main) as Sales and Listing Agent. Aalto Capital (Munich) acts as financial advisor to Iute Group.