June 21, 2022
AS DelfinGroup raises 10 million euros in bonds and lists them on Nasdaq First North alternative market
On Tuesday, 21 June, Latvian financial group AS DelfinGroup starts listing 10 million euros bonds on Nasdaq First North alternative market of Nasdaq Riga. In late May, the company completed the issue of these bonds with the historically lowest annual coupon rate of 8%. The par value of one bond is 1000 euros, with a maturity date of 25 November 2023. The purpose of the bond issue is to diversify the financing structure and refinance existing liabilities on more favourable terms.
Aldis Umblejs, Chief Financial Officer of AS DelfinGroup: “Raising financing on better terms is good news for the company and our shareholders. We can invest more in developing new and innovative products, to strengthen the long-term market position of AS DelfinGroup, and make sure that we continue to grow faster than the market average. We have been listing bonds on the stock exchange since 2014, and over these years the coupon rate has decreased as low as 8%, compared to 14% of the first bonds that our company issued. The first time around, the company issued five million euros’ worth of bonds in 2013 with an annual coupon rate of 14%. In total over these nine years, we have issued bonds seven times and raised 37 million euros. Of these, four times the bonds have been traded on the Nasdaq Riga stock exchange. During these nine years, we have built and strengthened long-term partnerships with many investors, and our company’s stable growth motivates them to re-invest in AS DelfinGroup bonds.”
Signet Bank AS organised the issue of AS DelfinGroup bonds.
Edmunds Antufjevs, Head of Corporate Finance of Signet Bank AS: “We would like to congratulate AS DelfinGroup on the listing of their bonds on the First North Nasdaq Riga alternative market. In a time when the geopolitical situation drives uncertainty and many capital market projects face cancellations due to market instability, it is a pleasure to see investors showing much interest in AS DelfinGroup bonds, viewing them as an integral part of their Baltic bond portfolios. Many thanks to the investors and AS DelfinGroup for their trust.”
AS DelfinGroup continues pursuing a diversified financing strategy, which makes it possible for the company to raise more funds on increasingly favourable terms. The initial public offering (IPO) of its shares, bonds and AS Mintos peer-to-peer lending platform together have generated funding used as part of the company’s cost optimisation programme by repaying more expensive financing previously raised. Five million euros worth of bonds issued in 2016 with a coupon rate of 14% were redeemed in late October last year. Plus, in November bonds issued in 2019 with a value of five million euros and a coupon rate of 14% were redeemed. Another 3.5 million euros worth of bonds, with a 12% coupon rate, were redeemed in December.
About AS DelfinGroup
AS DelfinGroup is a licenced technology-based financial services company that was established in 2009 and operates under the brand names Banknote and VIZIA. The company continuously develops and offers consumer and pawn loans, loans developed for senior citizens, Buy now pay later loans (BNPL loans), as well as sale of pre-owned goods both online and at more than 90 branches across Latvia. On average, 35 thousand loans are issued every month and serviced by the professional team of more than 300 AS DelfinGroup employees. The company has a total of over 400,000 registered customers. Since 2014, AS DelfinGroup has been known on the Nasdaq Riga Stock Exchange as a bond issuer and since 2021 as a share issuer on the Baltic Main List. The company’s IPO in 2021 attracted almost 6000 new shareholders. The company regularly pays dividends to its shareholders. In 2021, the company's net loan portfolio grew to EUR 43 million, while its EBITDA reached EUR 10.2 million, with profits before income tax for dividends EUR 5.2 million. The company’s sustainability is based on focused corporate governance, fintech innovation, responsible lending, financial inclusion, and facilitating the circular economy. The company has been profitable every year since 2010.