Mash Group Oyj
20th Euroloan Bond repaid
The FinTech group reaches a landmark with the 20th bond of EUR 15 million repaid, continuing the perfect track record of the Group. Over time funding sources have diversified and become cheaper with a lower risk level. The next step is becoming a bank to further cut interest rates and increase availability of funding, Chairman Tommi Lindfors declares.
Helsinki, Finland, 2016-06-21 09:00 CEST (GLOBE NEWSWIRE) --
Euroloan Group PLC and Group companies have to date issued a total of 24 bonds, to a total value of over 60 million euros. The first of the bonds were issued in 2011, and the repayment of bond no. 20 means that bonds amounting to over 40 million euros have been repaid.
Currently, four bonds are outstanding, with a total nominal value of over 20 million euros. The bonds can be found on Bloomberg with the following ISIN-codes: FI4000072863, FI4000088018, FI4000090303, and FI4000180351.
The proceeds from the bonds have been used to capitalize the direct and indirect subsidiaries of Euroloan Group PLC. Euroloan bond investors are very diverse and include funds, institutions, family offices, investment companies and private investors.
Bond no. 20 had a nominal value of 15 million euros, with a 2-year maturity and 6% p.a. coupon, and it was repaid on its maturity date 19.6.2016.
According to Mr. Matti Malkki, Group CFO, investors have definitely liked the bonds. “First of all, basic things such as paying the interest monthly and of course repaying each and every bond on time is something that bond investors appreciate and expect. Doing that for 20 bonds without a hitch signals reliability, which bond investors really like. At the same time our risk levels have been reduced considerably. This has been reflected in the nominal interest rates of the bonds, which have fallen successively lower. At 6%, this latest repaid bond no. 20 has still offered a great risk/reward ratio for our investors, which was very much appreciated by them.”
“We started with very small bonds when our business was still small. As we have grown, so has our funding base, which this repaid bond no. 20 shows. Our funding has also diversified and developed, in accordance with our strategic plan. We have evolved from start-up funding sources (2007-2011) to bonds (2011- ) and later to structured credit facilities (2015- )“, Group Chairman Tommi Lindfors says. “The next step in this development is accepting deposits from the public.”
Euroloan’s subsidiary in Luxembourg, Euroloan S.A., is in the process of applying for an EU bank license. Mr. Lindfors expects this to bring several additional benefits to Euroloan. “Larger, more stable, cheaper and more diversified funding sources are obvious benefits of accessing the interbank market and accepting deposits. This will also allow Euroloan to charge lower rates in its lending business, thus attracting more premium customers, which in turn lowers average default rates. The ability to diversify both products and the customer base reduces risk.” Mr. Lindfors continues: “A license has positive effects not only for funding. Faster expansion, the ability to offer a wider variety of products, and economies of scale all contribute to the business logic of becoming a licensed bank.”
“Still, just the effect on funding cost is significant. With today’s low interest rate levels, also Euroloan’s interest rates would fall to only a fraction of the recently repaid bond. That alone is reason enough”, CFO Malkki concludes.
About Euroloan Group
Euroloan Group PLC is a rapidly growing international group, specialized in highly automated financial services and financial technology (FinTech). The Group has offices in Helsinki (HQ), Luxembourg, Stockholm and Warsaw and the team includes over 50 professionals of over 10 different nationalities.
The Group operates in a mobile online environment offering credit limits, loans, money transfers, webshop payment services, invoice payments and collection services as a real-time e-business to retail customers. For webshops and sales points, Euroloan offers pay-per-invoice and sales finance solutions that are easy, free of charge, and work under the merchants’ own brands. Euroloan originates high-quality structured consumer receivables portfolios with guaranteed performance and continuous monitoring and servicing.
All services are truly instant and automated and include origination and debt servicing functions that traditionally have been manual, such as identification, scoring, underwriting, payments, back-office, credit monitoring and debt collection. This is made possible by Euroloan’s proprietary cloud-based banking software and secured by its ISO27001:2013-certified information security management system.
More information about Euroloan Group is available at www.euroloan.com, in Finland www.euroloan.fi, in Poland www.euroloan.pl and in Sweden www.euroloan.se.
For more information, please contact:
Euroloan Group PLC
Tel +358 10 217 1003