October 2, 2020
DelfinGroup successfully issues bonds in the amount of EUR 3.5 million
Riga, 2020-10-02 12:36 CEST -- On September 30, 2020, the subscription to SIA DelfinGroup unsecured bond issue in the amount of EUR 3'500'000 was successfully completed. The annual coupon rate of the bonds is 12%, with a monthly coupon payment and a maturity date at November 25, 2022.
The arranger of the issue was AS Signet Bank, and the demand for bonds significantly exceeded the supply. This is a positive signal for SIA DelfinGroup about investors' confidence in the company's business model and growth prospects.
DelfinGroup chairman of the board Agris Evertovskis shares his opinion on the bond placement: "We had been expecting high demand for our securities in the current issue, but the fact that the demand exceeded the supply was as a pleasant surprise to me. We have been continuously implementing changes aimed at improving our business model, strengthening our balance sheet and developing corporate governance. Obviously, investors appreciate it. I am proud of the achievements of our team.”
Didzis Ādmīdiņš, Member of the Board and CEO of DelfinGroup, on bond issue: “The significant demand for our bonds can be related to the evaluation of our work, and we are honored to be trusted. The well-known and difficult conditions of 2020 will, in my view, make us stronger and more prepared for external shocks, and this situation has further motivated us to optimize our processes. The additional funds raised will allow us to continue our course, as a result of which we are able to grow our loan portfolio, thus bringing in additional income and, consequently, developing the company.”
DelfinGroup Member of the Board and CFO Kristaps Bergmanis adds: "The most important result of the bond issue is justification of the potential to reduce financing costs in the future. The raising of the capital allowed us to attract new investors and to ensure the adequate proportion between financing from corporate bonds and the financing originating from P2P lending platform. We highly appreciate the professionalism of the team at Signet Bank in arranging the bond issue and attracting investors.”
The unsecured bonds issue was a private placement to up to 150 investors, with a minimum investment of EUR 10 000. The subscription for the issue started on September 23, 2020 and ended on September 30, 2020. Arranger of the issue - AS Signet Bank.
SIA DelfinGroup is a licensed consumer lending company, founded in 2009. The Group represents such brands as Banknote, VIZIA and Riga City Pawnshop. The Group's core services are pawnbroking loans, consumer loans, as well as senior loans, the terms of which are specially adapted for senior consumers. The Group operates in 38 Latvian cities and towns with a total of 87 Banknote branches, and the company is also represented in the digital environment with remote service provision - in the field of consumer loans and an online store. The company employs more than 270 professionals and paid 2.97 million euros in taxes in 2019. SIA DelfinGroup is a member of LAFPA and LTRK and has received the Gold level status of the SRS cooperation program.