Gabriela Bergmane


We have added 2021 Q3 financials for two $Mintos loan originators: Creditstar and Iute Credit.

Creditstar - key figures:
Profit = € 2.1m
Assets = € 188.0m
Equity = € 38.3m
Debt = € 149.7m

Iute Credit - key figures:
Profit = € 4.4m
Assets = € 130.0m
Equity = € 23.7m
Debt = € 106.3m

The full reports can be viewed here:

$NEO Finance has published 2021 Q3 financials.


- Based on non-audited accounting data, income has grown significantly up to EUR 914 K. Compared to
2020 Q3, it increased by 34 %.
• Debt recovery costs decreased by 45 % from EUR 133 K to EUR 63 K.
• Salary expenses rose by 99 % from EUR 111 K to EUR 220 K.
• Number of registered users grew by 20 %, up to almost 125 K users.
• EUR 7,7 M of financed loans were granted.

Key figures:
Profit = € 0.3m
Assets = € 12.2m
Equity = € 2.2m
Debt = € 9.7m

We have added the 2020 annual report of IDF Eurasia.

Key figures:
Profit = € 4.2m
Assets = € 74.9m
Equity = € 18.6m
Debt = € 56.3m

$Reinvest24 have released the 2020 annual report.

Key figures:
Profit = € 0.0m
Assets = € 0.1m
Equity = € 0.0m
Debt = € 0.1m

The 2020 annual report of $Lendermarket, audited by Grant Thornton, has been published.

Key figures:
Profit = € -0.4m
Assets = € 0.4m
Equity = € -0.2m
Debt = € 0.6m

We have added the 2020 annual report of Credissimo, a $Mintos loan originator.

Key figures:
Profit = € 2.7m
Assets = € 24.1m
Equity = € 18.8m
Debt = € 5.2m

We have added the 2021 Q2 financial report of $Debitum Network.

Key figures:

Profit/loss: € -21k
Assets: € 313k
Equity: € 286k
Debt: € 27k

We've added Investly Technologies OU financial report 2020, key figures:

Loss = € -0.1m
Assets = € 0.1m
Equity = € 0.0m
Debt = € 0.1m

$Mintos published an update on Notes:

Key takeaways:
- Loans on Mintos will be classified as regulated financial instruments called Notes
- By investing in Notes, investors will gain diversification across 6-20 underlying loans
- Each Set of Notes will have its own International Securities Identification Number
- There will be no changes to how accrued interest is calculated
- Investments in Notes will be governed by prospectuses and final terms
- User experience on Mintos will largely remain the same as it is now

Notes are financial instruments emitted by a special purpose entity within the Mintos group that acts as the issuer. There are 2 ways how Notes will be created based on loans:

- In the direct structure, the issuer acquires the title in loan receivables from the lending company that extended these loans to the borrowers.
- In the indirect structure, the loans underlying the Set of Notes are issued to the lending company by a special purpose entity within Mintos group. These loans are collateralized with loans the lending company issued to its borrowers. The indirect structure is applied when there are reasons why the issuer can’t acquire the loans against the borrowers.

Currently, whenever an investor invests in loans on Mintos, a custom loan assignment agreement is made between the investor and the lending company. Investments via assignment agreements do not fall under regulatory oversight.
Notes, on the other hand, are regulated financial instruments. Once Notes are released, investors on Mintos will be protected by the MiFID II investor protection framework, Prospectus Regulation, Packaged retail investment and insurance products (PRIIPs), and Investor Protection Law.
In addition, investors on Mintos will be protected by a national investor compensation scheme established according to the requirements of EU Directive 97/9/EC. If Mintos fails to provide investment services, retail investors are entitled to a compensation of 90% of the irrevocable loss resulting from the non-provision, up to a limit of €20 000.

The investor compensation scheme does not compensate investors for losses resulting from:
- Changes in the price of an investment
- The default of a borrower, lending company, or issuer
- The lack of a market for the purchase or sale of an investment

The minimum investment is €50 per Set of Notes. Each investment provides exposure to all underlying loans in the Set proportional to the loan amount.

Mintos plans to introduce the first Notes this month.

#iutecredit CEO Tarmo Sild was interviewed by BondGuide Magazine:

BondGuide : The last two years 2020 and 2021 were certainly not ordinary years. How did IuteCredit experience these two Corona years?

Sild: Let me be selfish for a moment: I love that we make money. Big changes are taking place on the planet in how we live here and I think we are part of it. We managed to grow our business despite the pandemic and all the pressures. We create and, in return, have benefited from the increasing social acceptance of digitization in the credit and payments industry. We ended the 2020 financial year above the 2019 figures. At the end of 2020, we had more than 130,000 high-performing loan customers in four countries and achieved a net profit of over EUR 5 million. Most gratifying, however, was the vote of confidence from our investors, which enabled us to use a further EUR 10 million from the existing EUR 40 million bond for future growth.

BondGuide : And the look ahead?

Sild: In 2021 we will see the trend of irreversible and constantly accelerating digitization. In the second quarter of 2021, we achieved more than 6% of total sales with various services related to payments, cards and cash transactions via the ATMs developed by IuteCredit, which can be easily and quickly accessed with a smartphone. And all without the need for a debit or credit card. What's more, more than half of all customer signatures in the second quarter were smartphone-based, either with one-time passwords or biometric. The MyIute app has already been downloaded by more than 80,000 people, even though it started from scratch in the first quarter. And to top it off, our customers continued to take out and repay more loans. Thanks to digitization, we earn more money with economies of scale, which are reflected in an improved sales / OPEX ratio. Consolidated assets increased from 116 to 123 million euros as the net loan portfolio grew from 81 to 88 million euros. There was similar growth in the gross loan portfolio. In contrast, liabilities to investors only rose from EUR 94 to 98 million.

BondGuide : In order to finance the growth, IuteCredit had issued a bond with a four-year term in 2019, which is also listed and traded here in Germany. Why a 'short-term' bond with a term of just four years?

Sild: Four years is not short, but I agree that five years is longer. Back in 2019, four years were long enough to make about four full portfolio reallocations as the average life of our product was about one year. By 2021, we've shown that IuteBond is a good addition to any fixed income portfolio or mixed capital portfolio as it provides stability and predictability despite the storms everyone has seen in the markets. The next issue should therefore be longer, for example five years, especially since the average term of our customer loans has also been extended to over 20 months.

BondGuide : Is the planned new bond just about refinancing the existing bond, reducing borrowing costs or providing additional growth capital - or a mixture of both?

Sild: We do not refinance existing bonds. It's a good asset that doesn't need to be withdrawn prematurely as long as it still has a useful life. Let's let the investors benefit from it. Of course we are watching the evolution of the aftermarket returns, which are around 10% - but that's not the issue either. The point is that we want to expand our credit and product portfolio, the demand is there. This demand arises from the growing customer base and from extending loan terms, both of which lead to an increase in the loan portfolio. This has to be financed. An amount of EUR 50 million would mean around 50,000 additional customers for us. This is what we want to achieve as the next milestone.


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