Creditstar has published the 2020 financial report, with a qualified opinion from KPMG.
The reason for the qualified opinion is that the company had revalued upwards the value of intangible assets in both 2019 and 2020, which is not permitted under the Estonian accounting standards.

Key figures:
Profit = € 5.5m
Assets = € 160.0m
Equity = € 30.6m
Debt = € 129.3m

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:

$Mintos Notes
Everything you need to know about: Mintos Notes base prospectuses
· The Mintos Notes base prospectuses will define Mintos-based structures such as association to lending companies, payment flows, and risks.
· Each lending company will have a dedicated base prospectus.
· Details not defined in the Mintos Notes base prospectus will be defined in the “Final Terms”
· The annexed document “Final Terms” will serve as an “identification card” for each Set of Notes.

We have added the 2020 annual report of IDF Eurasia.

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

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

The Financial and Capital Market Commission (FCMC) at its 21 September Supervisory Board meeting has approved the prospectus for initial public offering (IPO) of the Latvian financial service company AS DelfinGroup. The DelfinGroup IPO will be the first IPO of the shares on Nasdaq Riga since 2017.

According to the IPO prospectus, the subscription for AS DelfinGroup new shares will take place from 28 September 2021 to 11 October 2021 (including). Retail investors from Latvia, Lithuania, and Estonia and institutional investors from Latvia and selected member states of the European Economic Area (EEA), as well as other institutional investors in accordance with the prospectus for the initial public offering (IPO) will be able to subscribe for the offer shares. AS DelfinGroup is entitled to make a public offer and issue up to 7,300,000 new shares (with over-allotment option for additional 1,095,000 shares, and the total number of shares will then reach 8,395,000 shares). The subscription price for each new share is EUR 1.52. The minimum amount of investment is 1 share.

Kesenfelds family owns 65.19% of DelfinGroup

$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.

$Mintos obtains European investment firm license:

On 17 August, the Board of the Financial and Capital Market Commission (FCMC) decided to issue a licence to AS "Mintos Marketplace" for the provision of investment and ancillary services and to issue a licence to SIA "Mintos Payments" for the operation of electronic money institution.

The authorised investment services indicated in the licence issued to AS “Mintos Marketplace” are execution of orders on behalf of clients, dealing on own account, portfolio management, investment advice and placing of financial instruments without an obligation to redeem financial instruments.
The authorised ancillary investment services indicated in the licence issued to AS “Mintos Marketplace” are holding of financial instruments, provision of services related to primary placement of financial instruments, provision of investment research, financial analysis or other general recommendation regarding transactions in financial instruments, as well as currency exchange services if they are related to the provision of investment services.

Now that Mintos is a regulated marketplace, it will begin to gradually transition investments in loans into the form of the regulated financial instrument – Notes. Once released, clients will be protected by the MiFID II investor protection framework, Prospectus Regulation, Packaged retail investment and insurance products (PRIIPs), Investor Protection Law and other regulations which aim to further protect the interests of the investors. In addition, as part of the regulation that’s now binding for the company, investors on Mintos will be protected by a national investor compensation scheme established according to the requirements of EU Directive 97/9/EC.

The first offering of Notes is expected to launch in the coming months.

''We anticipate this transition period to be no longer than 6 months and we’re eager to finalize the transition even sooner. So by the end of January 2022 at the latest, we expect to offer investments in loans in the form of Notes only. Any loan investments that have been made as claims will continue to exist in investors’ portfolios until they amortize.''

Fitch Ratings affirm Eleving Group at 'B-'; Outlook Stable:

Risk appetite: high
Eleving's target clients are below-prime individuals in emerging markets who cannot afford newer cars, but they reflect the overall median earner in Eleving's countries of operations. Foreign currency risk is a feature, but Eleving has reduced its appetite for this following sizeable credit and FX losses in 2020. However, the open FX position remains large (estimated at about 2x capital) and Eleving's entry in unsecured high-cost consumer loans (about 20% of the net portfolio) indicates a still above-average risk appetite.

Asset quality: improving
Eleving's asset quality is reflective of its target market (impaired loans ratio of 21% at end-1H21) and is normally mitigated by strong loan yields (annualised interest income to average gross portfolio was 50% in 1H21). Asset quality has been improving since the historical peak of 24% at end-5M20 and we expect that the generation of new impaired loans will decrease to about 10% in 12M21 as pandemic risks fade.

Leverage: remains elevated
Current levels (gross debt to tangible equity plus shareholders' loans of 7.1x at end-1H21) remain elevated, especially in relation to Eleving's credit and FX risks. The quality of capital continues to be a weakness, but has improved thanks to gradual profit retention and the conversion into cash of previously booked revaluation gains (EUR1.4 million still unearned at end-1H21, equivalent about 5% of capital). Receivables from related parties have also significantly decreased (EUR 2.9 million, about 10% of capital), ahead of schedule.

Funding flexibility: improving
Funding flexibility is improving helped by a more stable macroeconomic backdrop. Eleving's funding profile remains concentrated but is supported by proven access to Mintos, a peer-to-peer funding platform (EUR80 million at end-1H21), and by successful refinancing of a EUR30 million bond issued by Eleving's Latvian subsidiary (due on 31 March 2024) in early March 2021.