IuteCredit issues EUR 75 million corporate bonds to professional and retail investors

Tallinn, Estonia, 27 September 2021. IuteCredit Group (“Iute”) has issued EUR 75million Senior Secured Corporate Bonds (ISIN: XS2378483494) through its fully owned subsidiary IuteCredit Finance S.a.r.l., following a series of European professional investor meetings as well as a first-time public offer to retail investors in Estonia, Latvia, Lithuania, and Germany. The proceeds of the issue will be used by Iute for financing growth in current and future markets and to refinance existing debt.

The significantly lower coupon price and longer maturity compared to the already outstanding corporate bond (XS2033386603) have a beneficial effect on Iute’s financing structure. The Senior Secured Corporate Bonds maturing 2026 were issued at par with an interest rate of 11.0% per annum payable semi-annually. The first interest payment will be carried out on 6 April 2022.

The initial public offer of up to EUR 50 million was oversubscribed by more than EUR 35 million. Therefore, Iute decided to increase the offer by EUR 25 million in line with the strong demand and the flexibility of current financing arrangements.

All retail subscription orders submitted of in total EUR 20 million were allocated in full. Of this, more than 2,500 retail investors from the Baltics accounted for almost EUR 18 million. Approximately 75% of the total issue volume was allocated under partial consideration of subscription orders to more than 30 institutional investors across Europe. Settlement is to be expected on 6 October 2021.

The new bonds are expected to be included on the Regulated Markets of both the Frankfurt Stock Exchange and the Nasdaq Tallinn Stock Exchange. First day of trading on the Frankfurt Stock Exchange is to be expected on 6 October 2021, and 7 October 2021 on the Nasdaq Tallinn Stock Exchange.

GOTTEX Brokers SA (Switzerland), Signet Bank AS (Latvia), Bankhaus Scheich Wertpapierspezialist AG (Germany), Redgate Capital AS (Estonia), Šiauliu bankas AB (Lithuania) and Adamant Capital Partners (Bulgaria) accompanied the offering as joint managers and regional sales agents. GSK Stockmann SA (Luxembourg) performed as Global Legal Advisor and LEXTAL Law Firm as Baltics Legal Advisor.

Aalto Capital (Germany) acted as Sole Global Coordinator for the public offering and the private placement as well as Financial Advisor to the Group.

Tarmo Sild, Group CEO of IuteCredit, commented: “We are humble and proud because of the trust and credit given to Iute by institutional and retail investors. The proceeds of the issue continue to support Iute in the pursuit of our mission, which is to create the extraordinary experience in the field of personal finance.”

Home Member State of IuteCredit Finance S.à.r.l. pursuant to article 2(1)(i) of Directive 2004/109/EC is Germany.