BlueOrange arranged „Mogo AS” EUR 10 million bonds issue

February 08, 2018

The financial leasing and sale-leaseback company AS “Mogo”, whose group companies provide services in Latvia, Estonia, Lithuania, Georgia, Poland, Bulgaria, Romania, Armenia, Moldova and Albania, has closed the subscription period for the bonds, attracting funds in the amount of EUR 10 million.

This is the second bond issue of the company. The first issue of EUR 20 million bonds has been listed on the Nasdaq Riga Baltic Bond List since November 2014. The bond issue was arranged by BlueOrange Bank, which has been advising “Mogo” since 2014.

The maturity of the bonds is March 31, 2021, the annual coupon rate - 10% with a monthly payment frequency. The bonds were offered to professional investors with a minimum investment of EUR 100,000 per each investor in the form of a private placement.

"Given the increased interest in existing “Mogo” bonds, we decided to issue new bonds that were identical in characteristics to the previous one. We received a lot of interest from current investors who are familiar with the company and have followed the company's development and financial performance, as well as from new investors. The entire issue was sold to professional investors from Latvia and Lithuania. Both this particular example and other bond issuers from the Baltic States prove that the raising of funds via capital markets is possible and it promotes the interest from investors in the future," said Edmunds Antufjevs, Head of Investment Origination at BlueOrange Bank.

"When in 2014 we issued and included the first EUR 20 million bond issue in the Nasdaq Riga, we hoped that transparency and regular financial reporting would help to diversify sources of financing in the future as well. We are glad that our expectations have been met. We highly appreciate the confidence shown by investors in the second issue of “Mogo” bonds, which will allow the further development of “Mogo AS” and the Mogo Group as a whole," explains Aleksandrs Cernagins, Member of the Management Board of “Mogo AS”.

Mogo Group started its operations in 2012, and its unaudited consolidated turnover during the first three quarters of 2017 amounted to EUR 28 million, while net profit was EUR 7 million. The number of registered clients exceeds 80,000, while the loan portfolio as per September 30, 2017 was EUR 86.7 million.

Information prepared by
Edmunds Antufjevs
Head of Investment Origination