Benefits of Investing in Corporate Bonds
Investors buy corporate bonds for a variety of reasons:
Attractive yields - usually offer higher yields than comparable-maturity government bonds or CDs
Safety - bonds are evaluated and assigned a rating based on credit history and ability to repay obligations
Diversity - provide an opportunity to choose from a variety of sectors, structures and credit-quality characteristics
SIA "VIA SMS Group" has been providing loans without collateral to individuals since 2009. It operates under the brand names VIA SMS, SAVA Card, VIA CREDIT and VIA CONTO, and offers loans for up to 12 months in Latvia, Czech Republic, Poland, Sweden and Spain. VIA SMS Group has more than 750 000 registered customers. The total amount of loans issued annually has reached EUR 55 million.
ViaSpar, which is part of VIA SMS Group, has received permission in Sweden to attract deposits in the amount of up to SEK 50 000.
Issue size: EUR 6,105,000
Interest rate: 12.5%, paid quarterly
Maturity: 25 May 2019
SIA “ExpressCredit”, operating under Banknote brand name, is the largest pawnshop chain in Latvia.
The company has been established in 2009 and currently has 96 branches in 40 cities.
SIA “ExpressCredit” is licensed non-banking credit institution, which provides secured and unsecured loans as well as markets second-hand goods. The company has serviced more than 250,000 clients.
Issue size: EUR 3,500,000
Interest rate: 15%, paid monthly
Maturity: 25 December 2020
“Mogo” offers classical finance lease and lends against vehicles already owned by clients (a type of service known as leaseback). The company was established in 2012, focusing on secured financing of used cars, has experienced rapid growth in recent years. Company has a strong online and onsite presence, sophisticated IT platform, branch presence and extensive car dealership network.
Issue size: EUR 20,000,000
Interest rate: 10%, paid monthly
Maturity: 31 March 2021
Bond prospectuses are registered by the Financial and Capital Market Commission and the emissions are included in the Nasdaq Riga stock exchange.
Before invest in bonds investors should refer to the information included in the prospectus, including risk section.