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.

Three more new LOs on $Mintos:


CAPEM is a lending company that funds small and medium enterprises (SMEs) in Mexico, as well as supports them with know-how and know-who in the fields of management, finance, and taxes. CAPEM’s clients are companies with revenue in the range of $200 000 – $5 million.
The company was founded in 2014 and currently has a team of 60 employees based in their headquarters in Guadalajara, Mexico. CAPEM is part of the Association of Sofomes of Mexico (ASOFOM), Association of Private Equity and Venture Capital of Mexico (AMEXCAP), and the SME Finance Forum by the IFC. Until May 2021, CAPEM had originated 1035 loans worth $117 million cumulatively. As of June 2021, the company has approximately €30 million worth of outstanding loan portfolio.

2. Pay P.S.

Pay P.S. (legal name Zaim Online) has almost 10 years of experience in the Russian lending industry. The company was founded in 2012 and initially started out as an online short-term loan issuer. In 2014, the company also launched its online flights’ ticket reservation system – this part of the business was later connected to the lending business by offering clients to purchase flight tickets by taking a loan with Pay PS. Since then, the company has also gained microfinance company (MFC) status, started issuance of point of sale loans and installment loans, and created a debt restructuring program for its clients during the Covid-19 pandemic in 2020. Pay P.S. currently has a team of 50 people. As of 31 May 2021, the company’s net portfolio value was €9.4 million. Since its founding, the company has issued €164,4 million in loans.

3. Watu Credit (Uganda)

Watu Credit, a lending company on Mintos offering investment opportunities in loans issued in Kenya, is broadening its portfolio and is offering investors the opportunity to invest in motorbike loans issued in Uganda. Watu Credit Uganda was founded in July 2019 and currently has a growing team of 140 employees. As of May 2021, the company had 15 431 active borrowers, with a net loan portfolio worth €12.1 million. 93% of Watu Credit Uganda customers are men, with an average age of 34 years, and the main purpose of taking loans is to buy a motorcycle taxi.

$Mintos has added three new loan originators to the marketplace:

1. Conmigo Vales

Conmigo Vales (legal name C&H Resoluciones) was founded in 2018 by two brothers Allan and Emilio Cherem, who were nominated by Forbes for Mexico’s “30 under 30” in 2017. The company is employing 100+ people at 10 client servicing branches in the northern part of Mexico and its administrative office. The company’s portfolio value exceeds MXN 170 million (approximately €7 million) as of the end of June. Cumulatively, there have been over MXN 600 million (approximately €25 million) worth of loans issued by Conmigo Vales.

Conmigo Vales has a unique business model that found a way to work with local communities by leveraging sales channels that are common for Mexico. The company partners with distributors who grant loans to people in their communities via vouchers (in Spanish: vales). The vouchers are used to purchase goods or services for daily needs. The borrowers can then repay the loans via various channels (shops, point of sales or the company’s client service centres).

2. GoCredit

The company issues direct debit and payroll loans, both of which will be listed as personal loans on Mintos.
Direct debit loans are personal loans that are automatically deducted once the borrowers receive a salary or pension in their bank accounts. Payroll loans are deducted by the employer (i.e. government agency) before the borrowers receive their net income effectively removing the risk of the borrower’s willingness to pay.
GoCredit was founded in 2011 and is currently employing 200 people. Until now, the company has issued more than 26 000 payroll loans and more than 9 000 direct debit loans. As of 30 May 2021, the company’s net portfolio was worth €8.7 million. GoCredit sees a tremendous growth opportunity as there are around 9 million government employees and pensioners who may qualify for payroll and direct debit loans.

3. Jet Finance

Founded in 2018, the company started out as a fully owned subsidiary of Mogo Finance (now Eleving Group). In 2021 Mogo reassessed its business strategy for the Kazakhstan market and decided to exit the country. The local Mogo management saw a good opportunity to use their experience and local market knowledge and bought out the Kazakhstan entity, founding Jet Finance. The company operates under the brand name Jet Car.
To date, Jet Finance has issued more than €12 million in loans to its 3200 clients. The company’s current net portfolio is €5 048 220 as of 22 June 2021. Jet Finance currently employs 60 people.

You can view 2020 and 2021 H1 financials of these companies here:

Eleving Group (former Mogo) and Delfin Group have published their 2021 H1 financial reports:

1. Eleving Group
Key Figures:
Profit = € 7.9m
Assets = € 291.2m
Equity = € 48.0m
Debt = € 243.2m

Comment from the CEO:Eleving Group has produced sturdy performance in the first half of 2021, boosted by the Group`s strategic focus on its existing markets and leaner organizational structure. The strong performance of the Group was driven by a record-high consolidated loan issuance volume, in particular, by record-high numbers of disbursed vehicle loans in Romania, Uganda, and Kenya and consumer loans in North-Macedonia. The used car market became increasingly active during the pandemic, and our industry know-how allowed us to react swiftly to the growing demand for safer, more cost-efficient personal mobility. The growing demand for personal vehicles across all of the Group’s markets increased both the average size of a Mogo loan (up by 4% q-o-q) and the number of applications for car loans (up by nearly 13% q-o-q).

Comment from the CFO:The record profitability achieved in the first half of 2021 provides conclusive proof that the revised strategy has largely been implemented as intended and is bearing fruit. The core profitability evidenced by the highest ever quarterly EBITDA with more than a 50% year-over-year increase and record-high portfolio of EUR 211.5 million, contribution to which was made by both of our business lines — vehicle and consumer financing.
The Group’s consistent financial performance is reflected in the strongest equity position in the Group’s history — total equity in the first six months of 2021 grew by 39.1%, reaching total equity of EUR 48 million at the end of the first half of 2021. Also, our funding position has remained strong, with continuously decreasing costs of capital on the Mintos peer-to-peer marketplace (weighted average funding rate for the whole portfolio funded through Mintos is below 10%) and our Eurobond and Latvian bond secondary marketprices are trading comfortably above par.

A conference call in English with the Group’s management team to discuss results is scheduled for 10 August 2021, at 15:00 CET. Register here:

2. Delfin Group

Key figures:
Profit = € 1.6m
Assets = € 39.7m
Equity = € 8.1m
Debt = € 31.6m

Didzis Ādmīdiņš, Chairman of the Board, AS DelfinGroup: For DelfinGroup, this quarter was marked by resilient growth. We had very good results in the consumer loan segment, as well as in the online trade of pre-owned goods. Moreover, during the second quarter we also experienced growth in the pawn loan segment. Generally, we see quite high level of economic activity in the entire country, which is also reflected by increased interest in financial and pawnshop services offered by DelfinGroup. In many areas outside Riga, we are almost the only provider of accessible financial services. This year, we have also opened four new Banknote branches, increasing our branch network to 93 branches in Latvia. Industry organisations and local governments also appreciate the DelfinGroup services network. Including three Banknote branches, which were awarded with the prizes in the competition named “Best Latvian Trader 2020” organised by the Latvian Traders Association and the Latvian Association of Local and Regional Governments.

Find the reports here:

$Mintos recovers funds from E-Cash:

In April 2021, lending company E-Cash informed Mintos of its plans to wind down its business operations. Due to E-Cash having missed regular settlement payments to investors for 7 days and a wind-down process that hadn’t yet been evaluated, Mintos suspended the lending company from the Primary and Secondary Markets on 21 April 2021.

At the time of the suspension, there were 11 516 investors with active investments in loans issued by E-Cash, with the average investment per investor being € 62.03. Having an overall € 1 117 096 outstanding investments due to investors at the time of suspension, Mintos initiated the process of the recovery of investors funds.

To maximize recovered amounts for investors, Mintos evaluated multiple recovery options. Following a thorough evaluation of the company’s accounts, agreements and respective recovery prospects, we decided in favor of an out-of-court settlement with E-Cash as the best option, taking into account the very short duration of E-Cash issued loans, servicing costs of the portfolio, and the time required of different recovery options.

With these considerations in mind, Mintos acted in the best interest of the investors to recover as much as possible, as fast as possible. After an extensive negotiation process, the initial expected recovery rate, as first shared with investors on 11 May 2021 during the quarterly review on funds in recovery, was less than 25%, with the company being in stage 4 (read more about the stages and details of the recovery processes). This recovery rate was increased to 35%.
E-Cash estimates that the repayments and debt collection process with its borrowers is completed, which means the lending company can finalize its wind-down and transfer the negotiated amount of € 410 864 to investors on Mintos. Mintos has received these funds and will be distributing them next week.

LF TECH, a lending company from Kazakhstan, resumes offering loans on $Mintos:

At the end of 2018, LF TECH launched on Mintos to offer short-term consumer loans issued in Kazakhstan. Relatively soon after the initial launch, the company took a pause for its new strategy adaptation and restructuring of the company for increased scalability opportunities. Now, LF TECH has resumed its activity on Mintos and starts to offer short-term consumer loans as an investment opportunity for investors.

LF TECH has been operating in Kazakhstan, their home market, as well as Russian and Philippian markets for multiple years, offering various consumer finance products. On Mintos, the company offers short-term loans issued by its brand Dengi Click. In the future, the company also plans to offer car loans issued by its brand Avto Zalog.

LF TECH successfully overcame the challenges the company faced during the pandemic thanks to a cash buffer created at the start of the business, which is still maintained. During 2020, the company reviewed its policies and adapted them where necessary. The company shares it was aware that many people in Kazakhstan had either lost their job, were furloughed, or received a pay cut during the pandemic. They eventually looked to take out loans, therefore LF TECH reviewed its risk scoring to avoid issuing loans to clients with a high risk of default.

The Mintos Risk Score for loans issued by LF TECH is 6, with the subscores of 5 for loan portfolio performance, 5 for loan servicer efficiency, 6 for buyback strength, and 6 for cooperation structure.